I am getting 6607.56 every time I’m doing with same process does anyone getting same answer which is given
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Hello Neha,
Try using the CF mode, the answer will match.
Are you having any issues with the inputs to be used?
please can u help me with the inputs once?
Hello
See in this question ist we need to calculate dividend
So for d¹=450×1.04 =468
D² 468×1.04 =486.72
D³ 486.72×1.04=506.19
D⁴= 506.19×1.04=526.44
P⁴ is given
Know Afterthat we need to use cf mode to calculate npv
No I don’t have any issue with input actually I am using cf mode but as I set my calci on 4decimal place .. and I didn’t round off that I am simply calculating and putting in cf mode but still iam getting to much difference
Hello Neha,
Calculation you have given above seems alright.
What are you taking your C04 as?
And are you are taking I as?
Sorry for late reply I am taking
I =12 and know I understood i was putting c4 value wrong i didn’t add d4 and p4 in cf mode 🙈
I took d⁴ ascf 4 and then p4 as cf5
Thanku so much know I got it
Great!
B is correct,
417.85 + 388.01 + 360.29 + 334.56 + 5719.66 = 7220.37
please explain
where you feel you are stuck, in CF mode or dividend calc.?
Follow this process
CF mode
2nd CLR work
CF0 = 0
CF1 = 468 (i.e., 450*1.04)
CF2 = 486.72 (i.e., 468×1.04)
CF3 = 506.19 (i.e.,486.72×1.04)
CF4 = 526.44(i.e., 506.19×1.04) + 9000 GIVEN
= 9526.44
I= 12%
CPT NPV
what is your answer of NPV?
‘
7220.38
This is correct.
Yess thanku
Yes