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HI dear john sir, how r u?
I feeling problem when there is a change in discount factor rate from year 1 to 2. what should we do the with discount factor?
for example
year cashflow
0 (300,000)
1 200000
2 100000cost of capital first year 15 % and second year will be 17%.
Take the discount factors for one year at 15% and for one year at 17%, and multiply them together.
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