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use of present value and annuity tables.

Forums › ACCA Forums › ACCA FM Financial Management Forums › use of present value and annuity tables.

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
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  • October 11, 2014 at 10:27 am #204146
    mariawaheed89
    Member
    • Topics: 2
    • Replies: 1
    • ☆

    sir,
    iam confused with the percentage fctors we need to use in tables.
    like when we r given return % and cost of capital…when to use which for each table.
    thanks

    October 11, 2014 at 1:01 pm #204161
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54716
    • ☆☆☆☆☆

    Return % has nothing to do with it.

    You use the tables for discounting at the cost of capital. The present value tables are for using when they are individual flows. The annuity tables are for using when there is an equal flow each year.

    You should watch the free lectures on investment appraisal (and if the discounting is causing you problems then watch the free F2 lectures on it, because the discounting in F9 is revision of Paper F2).

    (If in future you want me to answer a question, then please ask it in the F9 Ask the Tutor Forum rather than in this forum)

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