Question
Can someone show me how to solve this on a financial calculator? I have used the CF function to find the NPV, which is a
Can someone show me how to solve this on a financial calculator? I have used the CF function to find the NPV, which is a different question on my homework. I'm having difficulty calculating just the PV.
When I find the NPV I get an answer of $27,881, which is not the answer to this question.
Assume that you are considering purchasing a commercial property today (which is the beginning of Year 1) for $100,000. You as an investor have a discount rate of 9%. The property is expected to generate cash flows in the amounts of $10,000 at the end of year 1, $13,000 at the end of year 2, $16,000 at the end of year 3, $20,000 at the end of year 4, $125,000 at the end of year 5. Compute the present value of the expected cash flows generated by this property.
namount
CF0$(100,000)
CF1$10,000C
F2$13,000C
F3$16,000C
F4$20,000
CF5$125,000
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