Reading 51: Investment Analysis - LOS b ～ Q1-2

答案和详解如下：

1．A real estate investment is expected to have cash flows after taxes in each of the next four years equal to GBP90,000, GBP55,000, GBP35,000, and GBP25,000, respectively. The initial equity investment in this property is GBP200,000 and the equity reversion after taxes (ERAT) at the end of year-four is estimated to be GBP100,000. Assuming an after tax return on equity of 8.5 percent, the net present value (NPV) and internal rate of return (IRR) for this investment is closest to:

A)           GBP47,268                               18%

B)           GBP41,399                               15%

C)           GBP45,376                               16%

D)           GBP17,960                               12%

The correct answer was A)

Using your TI BAII Plus:

[CF] [2nd] [CLR WORK]
-200,000 [+/–] [ENTER] [↓]
90,000 [ENTER] [↓] [↓]
55,000 [ENTER] [↓] [↓]
35,000 [ENTER] [↓] [↓]
125,000 (note: CF3 = 25,000 + 100,000)

[NPV] {8.5} [ENTER] [↓]
[CPT] = GBP 47,267.91

[IRR] [CPT] = 18.39 percent

2．A real estate investment is expected to have cash flows after taxes in each of the next three years equal to CAD70,000, CAD50,000, and CAD65,000, respectively. The initial equity investment in this property is CAD600,000 and the equity reversion after taxes (ERAT) at the end of year three is estimated to be CAD500,000. The internal rate of return (IRR) for this investment is closest to:

A)   5.0 percent.

B)   -7.8 percent.

C)   8.0 percent.

D)   -5.0 percent.

The correct answer was A)

Using your TI BAII Plus:

[CF] [2nd] [CLR WORK]
600,000 [+/–] [ENTER] [↓]
70,000 [ENTER] [↓] [↓]
50,000 [ENTER] [↓] [↓]
565,000 [ENTER] [↓[↓] (note: CF3 = 65,000 + 500,000)
[IRR] [CPT] = 5.0056 percent