Question
Question 1:A project manager is using the net present value method to make the final decision on which project to undertake. The company has a
Question 1:A project manager is using the net present value method to make the final decision on which project to undertake. The company has a 12% required rate of return and expects 3% rate of inflation for the following four years. What is the NPV of a project that has a case flows as shown:
Year Cash Flow
0 -250,000
1 50,000
2 60,000
3 70,000
4 80,000
I know the answer is -$69,387
How do I calculate using a TI 84 calculator and not a finance calculator?
I have another question like the one above but this one has a NON discounted payback.
Question 2: A project manager is using the payback method to make the final decision on which project to undertake. The company has a 10% required rate of return and expects a 4% rate of inflation for the following four years. What is the non discounted payback of a project that has cash flows as:
the cash flows is the same as question 1.
I need to know how to calculate using a TI84 calculator not a finance calculator. So I'm looking for the formula for each question.
Thank you for your help :)
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