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Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › Annuity table OR Present value table
Hello friends,
Can someone advise me as to when we should look up the annuity table and when to look up the PV table.
During the APV calculation , the tax benefit was discounted by look up at the annuity table NOT the usual PV table
i am kind of confused because in the usual NPV calculation with cashflows for say 3 years we use the PV table ( the first given table ) not Annuity table
i hope i make sense. Awaiting some feedback to clarify my doubt
Cheers
You use the present value table to discount individual cash flows.
You use the annuity tables when there is an equal cash flow each year for several years (only because it is quicker than discounting each year separately, which would give the same result)