1
$\begingroup$

I've calculated the answers manually but would like to learn how to do so on the financial calculator to save time on the test and minimize errors. How to do this?

Problem: You have been offered a very long term investment opportunity to increase your money $100$ fold. You can invest $\$1000$ today and expect to receive $\$100,000$ in $40$ years. Your cost of capital for this (very risky) opportunity is $25%$. What does the IRR rule say about whether the investment should be undertaken? What about the NPV rule? Do they agree?

$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.