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How would the above questions be solved on a Financial Calculator (I use TI-84). apparently the NPR function can be used to solve this? If
How would the above questions be solved on a Financial Calculator (I use TI-84). apparently the NPR function can be used to solve this? If so, how do I do it step by step
a. $480.03 b. $433.23 C. $456.03 d. $505.30 Rationale: I/YR=6.25% Manual method: Find the individual PVs and sum them. Financial Calculator: CF0=1,C01=75,C02=225,C03=0,C04=300;NPVkey,I=6.25 NPV=505.30 The correct answer is: $505.30 What is the expected rate of return on this investment? a. 6.77% b. 7.50% C. 7.13% d. 7.88% Financial calculator: CF CF0=1,000,C01=75,F01=4,C0=1075,F02=1 IRR CPT=7.50% This is the discount rate that causes the PV of the inflows to equal the initial negative CF. The correct answer is: 7.50%Step by Step Solution
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