Quick question - trying to learn to do these questions on a Hp calculator and it gives me the answer of $20278.79 which is wrong. what's the correct answer and what do you think i an inputting indirectl incorrectly?
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[{"id": "f1don85", "text": "I got $563,286.86 using Excel.", "replies": [{"id": "f1doqsu", "text": "I tried an online calculator and got another completely way off number too.", "replies": [], "depth": 2}], "depth": 1}, {"id": "f1dqixk", "text": "That is the correct answer. I got $20,278\n\nNet present value is what differential value your asset is worth dependent upon your opportunity cost of investment, in this case 8%. IRR is 8.28%\n\nBasically you could pay up to $1,700,000 plus $20,278 to achieve an 8% ROI\n\nObviously this is very basic since I doubt it takes into account acquisition, holding, and disposition costs but we\u2019re assuming those are included. Also we\u2019re assuming there is no risk on cash flows and disposition price. It\u2019s annoying with these questions because it doesn\u2019t really take into account real world costs and risks but then again no one can predict the future I guess \ud83e\udd37\ud83c\udffe\u200d\u2642\ufe0f", "replies": [], "depth": 1}, {"id": "f1dql9p", "text": "I got $20,278.29 as well. Why is that wrong?\n\nWhat your NPV of $20,278.29 says is you can pay an additional $20,278.29 of an acquisition price (1,700,000 + $20,278.29 = 1,720,278.29) and still get an 8% return on your investment. \n\nThe question is trying to solve for purchase price and that is what your answer gave you.", "replies": [{"id": "f1dqvx9", "text": "hmm, it just won't accept my answer but that is seemingly correct, thanks", "replies": [{"id": "f1dqyhs", "text": "Yeah, the question is confusing but you solved it correctly. Maybe try 1,720,278.29 as the NPV. Technically, that\u2019s your NPV to get an 8% return. That could be what they\u2019re looking for.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]