An investor wishes to purchase an investment for $10,000 which produces cash flows of$0 EOYI, $1,000 EOY2, $5,000 EOY3, and $7,931 EOY4. If the investor's target yield for this investment is 13%, what is the maximum price the investor can pay for the property and still earn the desired return?

Solution: In this problem, (10,000) would be entered as CEo. O as CF, 1,000 as CFy 5,000 as CF

, and 7,931 as CF4. Answer: NPV = ($887).

how to get to that solution?