Using financial calculator
PV=-10000000
PMT=0
I/Y=5%
N=3
CPT FV=11576250
Value of house=11576250*(5%-3%)=231525
Using formula:
Let the value of house in 4th year be X
Then Present value of the house in 3rd year=X/(r-g)
Present value of house now=X/(r-g)*1/(1+r)^3
Present Value of investment=Present value of house now
Hence,
10=X/(1+5%)^3*1/(5%-3%)
=>X=10*(5%-3%)*(1+5%)^3*10^6=231525
please use financial calculator Use this information for the following 2 questions: The BU chapter of Habitat for Human...
Read the Article posted below, then answer the following
questions:
1. As a junior member of your company’s committee to
explore new markets, you have received a memo from the chairperson
telling you to be prepared at the next meeting to discuss key
questions that need to be addressed if the company decides to look
further into the possibility of marketing to the BOP segment. The
ultimate goal of this meeting will be to establish a set of general
guidelines...