01-29-2009, 02:18 PM

So I am taking Econ 381 it is labor economics and we are currently working on calculating the NPR and IRR. I am trying to use my roommate financial calculator while he is abroad with little to no success. I even googled instructions on how to do this darn thing.

Anyway I did it in excel but my professor said I was still getting the wrong answer. It is as follows

Consider and 18-year old who is about to embark on a three-year course of study. The total costs of the course are $18,000, payable in advance. The return take the form of an annual $5,000 earnings premium (paid at year end) that the individual receives from age 21 through age 60. Calculate the net present value of this investment assuming a discount rate of 5%.

If anyone could explain how to accomplish that on a financial caculator or care to look at my excel spreadsheet and give me help or knows the right answer so I could work backwards. All help would be appreciated.

I hope this is in the right section I just stumbled upon this forum looking for help.

Sorry for it being so long but this is due tomorrow and this one question is killing me, thank you so much

Thank thank you

-dowerk

-I posted this in the student forum also just to make sure someone saw it, thanks so much

Anyway I did it in excel but my professor said I was still getting the wrong answer. It is as follows

Consider and 18-year old who is about to embark on a three-year course of study. The total costs of the course are $18,000, payable in advance. The return take the form of an annual $5,000 earnings premium (paid at year end) that the individual receives from age 21 through age 60. Calculate the net present value of this investment assuming a discount rate of 5%.

If anyone could explain how to accomplish that on a financial caculator or care to look at my excel spreadsheet and give me help or knows the right answer so I could work backwards. All help would be appreciated.

I hope this is in the right section I just stumbled upon this forum looking for help.

Sorry for it being so long but this is due tomorrow and this one question is killing me, thank you so much

Thank thank you

-dowerk

-I posted this in the student forum also just to make sure someone saw it, thanks so much