Media Summary: If our return required rate of return is 10% then that's is worth more than receiving $700 today so the the formula Okay CF 0 whoops CF 0 is gonna be 0 now you hit down arrow and C 0 1 is 400 yeah Okay we to do this calculation we have to switch the calculator to begin mode so that's
Cfin6 Chapter 4 4 - Detailed Analysis & Overview
If our return required rate of return is 10% then that's is worth more than receiving $700 today so the the formula Okay CF 0 whoops CF 0 is gonna be 0 now you hit down arrow and C 0 1 is 400 yeah Okay we to do this calculation we have to switch the calculator to begin mode so that's ... to calculate the dividend um but it's the dividend divided by the required rate of return and and The there we do have a formula so it's 1 plus 0.08 divided by ... 11 699 53 to pay off our loan so we at the end of the three years we have a zero balance on the loan that is the end of
Okay all right back here all right so here's future value they were they're gonna compound this seven the $700 at 10% interest Maturity or face value at the bun and then is the years to maturity
