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October 15, 2021 at 3:28 am
Sir i am not getting 5 percent growth rate in question 2. Kindly help. When i take root (36/33.1)^.3333 i get different answer.
John Moffat says
October 15, 2021 at 8:10 am
I don’t know where you are getting 33.1 from.
It should be (36/31.1)^0.33333 – 1 = 0.05 (or 5%)
October 11, 2021 at 7:36 pm
sir in question 3 ,
I don’t get why we multiply 36 by 1.05
why do we not just divide 36 by 540 and then add the 0.05
October 11, 2021 at 7:43 pm
sorry i meant question2
October 12, 2021 at 7:09 am
Because that is what the formula provided on the formula sheet requires!! Did you not watch the free lectures first?
May 20, 2021 at 12:56 pm
Sir there is an issue with the question 3 answer. The annuity df for 5 yrs is 3.791, not 3.761 as you stated in a previous comment. The npv @10% is $ -4.847 .The irr will come to 12.89%
May 20, 2021 at 1:02 pm
The npv @10% is *$ + 4.847
May 20, 2021 at 3:50 pm
I assume that you are referring to my comment from 2017. There was indeed a mistake in my comment and I have now corrected it. The IRR is not 12.89% however. It is 11.45%.
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