If you have this offer "you will invest $200 per month for the first 45- months, where the first payment at the end of the first month. After that, you will receive $10,000 cash at the end of month 48. Which of the following equations to calculate the IRR for this offer is False? O a. $10,000 (P/F, i%, 48) (A/P, 1%, 45) = $200 O b. $200 (F/A, 1%, 45) (F/P, 1%, 3) = $10,000 O c. $200 (P/A, 1%, 45) (F/P, 1%, 48) = $10.000 Od. $10,000 (P/F, i%, 48) (A/P, i%, 3) = $200

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 22P
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If you have this offer "you will invest $200 per month for the first 45- months, where the first payment at the
end of the first month. After that, you will receive $10,000 cash at the end of month 48. Which of the following
equations to calculate the IRR for this offer is False?
O a. $10,000 (P/F, i%, 48) (A/P, 1%, 45) = $200
ion
O b. $200 (F/A, 1%, 45) (F/P, i%, 3) = $10,000
O c. $200 (P/A, 1%, 45) (F/P, 1%, 48) = $10.000
O d. $10,000 (P/F, i%, 48) (A/P, 1%, 3) = $200
Transcribed Image Text:If you have this offer "you will invest $200 per month for the first 45- months, where the first payment at the end of the first month. After that, you will receive $10,000 cash at the end of month 48. Which of the following equations to calculate the IRR for this offer is False? O a. $10,000 (P/F, i%, 48) (A/P, 1%, 45) = $200 ion O b. $200 (F/A, 1%, 45) (F/P, i%, 3) = $10,000 O c. $200 (P/A, 1%, 45) (F/P, 1%, 48) = $10.000 O d. $10,000 (P/F, i%, 48) (A/P, 1%, 3) = $200
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