NPV and IRR calculation (for the @CFA Level 1 exam)

[@Alpha-kv3ou]

Love this Lightboard-Starphire tech, very less seen in my country.

[@letmeexplaincfa]

Thanks, I built this lightboard and studio myself, so very glad you like it! I believe there are only 2 other lightboard a in my country😀

[@MPORANYISENGAInnocent-wv6jl]

yeah anyway what is your nationality

[@felipevelez9438]

Thank you, nice tips and videos

[@letmeexplaincfa]

You are very welcome!

[@uwingeneyejoyeuse6246]

Thank you. `mai know how we do calculation of the NPV of an investment project if there is a perpertuity cash flow using BA II plus calculator?

[@letmeexplaincfa]

Please refer to this video: Time Value of Money (TVM) - perpetuities (for the @CFA Level 1 exam) kzbin.info/www/bejne/hauWgGl6bqeYpKc

[@emalineho2983]

@@letmeexplaincfa A firm is considering a project that would require an initial investment of THB270 million (Thai baht). The project will help increase the firm’s after-tax net cash flows by THB30 million per year in perpetuity, and it is found to have a negative NPV of THB20 million. The IRR (%) of the project is closest to: How do you approach this question?

[@MPORANYISENGAInnocent-wv6jl]

hello sir, you're expert. I'm finding you well, but i have a confusion in case of 2.5year how to use calculate to solve any question related like that one.

[@letmeexplaincfa]

You would need to treat 6 months as a single period, and compute an IRR that was semi-annual, then annualize. Or just use Excel. In the exam, you will face annual problems anuway.

[@MPORANYISENGAInnocent-wv6jl]

@@letmeexplaincfa thank you sir!