CFA practice problems reading 10, Q13

[Cash is King]

Hey guys,
Could anyone shed some light on q13 part A ii) where you need to formulate a return objective. It all makes sense up to the return calculation, I can’t quite figure out how they got 4.427% after tax.
I may be missing something really obvious but any help would be much appreciated.
Thanks!

 

[cpk123]

Income : 80000
Tax = 40% of 80000 = 32000
Living Expenses = 74000
Net outflow = 48,000 - 74,000 = (26,000)
====
Assets:
Inheritance: 900,000 + Assets (5000+160,000+220000) - Down Payment (30,000) - Donation (20,000) = 1235000
Need 2000000 in 18 years.
PV = 1235000 (positive inflow)
FV = -2000000 (outflow, negative)
PMT = -26000 (outflow, negative)
N = 18
Compute I/Y = 4.427%

 

[perdition]

Add up assets = 1, 285,000
take off liquidity requiremennts 30,000 + 50,000 = 80,000
Investible assets = 1,235,000
requirent or fv in 18 years = 2,000,000
Here is the catch……due to salary and living costs they are net spenders, so actually draw 26,000 from the pf each year..
So when you work out the FV calc for 2,000,000 in 18 yrs…you need to consider that from the pv of 1,235,000 there is actually a payment OUT of the pf of 26,000
pv = -1,235,000
fv = 2,000,000
n = 18
pmt = 26000 (note sign as payment out, not into pf)
cpt i/y = 4,4274

 

[Cash is King]

Thanks for the rundown, both of you!
I was messing up on the sign of the PMT, will be sure to look out for that in future.