Question
Assume that Mike can reinvest all after-tax profit at a rate of x% p.a. Use Goal Seek to find this reinvestment rate if Mike requires
Assume that Mike can reinvest all after-tax profit at a rate of x% p.a. Use Goal Seek to find this reinvestment rate if Mike requires a holding period yield rate of 7.5% p.a. for this investment (from 1 January 2021 to 1 January 2024). The investment at the start is 200,000 and the sell price is 210,000 at the 4th Year. the total Profits from Taxes are 24376.42. The Tax Rate is 20%, CPI or Y = 0.80%, required holding period yield rate is 7.5% as given in question. Please show DETAILED FORMULAS on excel how you used GOAL SEEK to get the new holding period rate, annual holding period rate and the goal seek for X% P.A. will upvote for correct answer.
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