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IRR / PVIF

AS 1712 views 8 replies

AGENT IS GIVING ME BELOW OFFER

I HAVE TO INVEST RS 60,000 / YEAR FOR 5 YEAR THAT MEANS I HAVE TO INVEST RS 300,000 IN FIVE YEARS ONLY THEN I WILL NOT INVEST ANYTHING, BUT END OF TWELVE YEARS HE WILL GIVE ME RS. 1,200,000 - WHAT IS PVIF/ IRR - IS IT ADVICEALE

ONLINE : parajf @ yahoo.com

                 parajf @ gmail.com

 

Replies (8)
As per my calculations, it is 14.9 %........... Although ULIP's which theAgent is trying to sell you, are NEVER recommended........ A term plan is best...... They recommend Such plans coz about 25 % of your premium goes towards their commission........

how did you calculate, please forward me your calculation file, what % of discount you have taken, thanking you in advance

Well, I did it on a calc....here s it.... The PV factor will remain them same if you invest 3,00,000 at one go for 10 years..... Hope u got what m trying to say....... So, 3,00,000 at x % interest rate yields 12,00,000 at end of 10 years.... A simple sum that can be solved by formula......... :)
Hi please share the excel file manmohan.... I worked out and it comes to 14.9 %.... There is some confusion i think....

 

 

HI !

 

IT WILL COME 16.3573 IF INVESTMENT IS MADE AT THE END OF EACH YEAR (WHAT WE DO IN FINANCIAL MANAGEMENT.)

 

IT WILL COME 14.6560% ,IF INVESTMENT IS MADE AT THE BEGAINING  OFEACH YEAR(WHICH IS APPLICABLE IN PRESENT CASE)

 

HENCE ANSWER IS 14.6560 %

 

I HAVE ATTACHED EXCAL FILE.

 

 

REGARDS…………..!

Dear Manmohan

Thanks for the file, very very useful, please attached excel file with calculation of NPV at 10 percent discount, please.... thankyou in advance

 

 

juzar sending you the NPV file as required by u

 

thank you


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