Annuity Versus Perpetuity

Annuity Versus - • $6,500 at the end of the first year 3 Unequal Cash Flows 4 • Solve for NPV/IRR Press CF then 2nd then CE/C(clear work

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Annuity Versus Perpetuity How much money do you need to have today to withdraw $9,000 annually for the next 20 years starting next year (r = 8.5%)? How much money do you need to have 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Annuity Versus Perpetuity How much money do you need to have today to withdraw $9,000 annually for the next 20 years starting next year (r = 8.5%)? $85,170.03 2
Background image of page 2
Unequal Cash Flows Earlier we did this problem, one cash flow at a time… You are offered a $29,000 consulting job that pays:
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: • $6,500 at the end of the first year, 3 Unequal Cash Flows 4 • Solve for NPV/IRR: ▫ Press CF , then 2nd, then CE/C (clear work) ▫ Press CF (CFo displays), then 0, then, then Enter ▫ Press ↓ (C01 displays), then 6500, then Enter ▫ Press ↓ (F01 • Earlier we did this problem, one cash flow at a time… – You are offered a $29,000 consulting job that pays: • $6,500 at the end of the first year,...
View Full Document

This note was uploaded on 01/24/2012 for the course FIN 4260 taught by Professor Victorwakeling during the Spring '12 term at Kennesaw.

Page1 / 4

Annuity Versus - • $6,500 at the end of the first year 3 Unequal Cash Flows 4 • Solve for NPV/IRR Press CF then 2nd then CE/C(clear work

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online