The Robertson Firm is considering a project which costs $123,900 to undertake. The project will yield...
The Robertson Firm is considering a project which costs $123,900 to undertake. The project will yield cash flows of $4,894.35 monthly for 30 months. What is the rate of return on this project? how do you do this with a financial calculator (TI-83 Plus), or by hand? NO EXCEL
Homework Answers
Initial Project Cost = $ 123900, Monthly Cash Flow = $ 4894.35 and Tenure = N = 30 months
Let the rate of return be r
On a financial calculator:
- Input PV = 123900, N = 30, PMT = 4894.35, FV = 0
- CMPT-> I/Y (=r)
- r = 0.01132 or 1.132 %
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