When dealing with the Millie’s case and calculating for required return.
here is what is written in the book:
FV: -college expense
PMT: - travel expenses
PV: 1,000,000
N=10
CPT I/Y = before tax return
My concern is that the I/Y being calculated should be after tax required rate of return, should it not?
Then we would back out the before tax required return with 1-T.
Please confirm