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Appendix 3: Value Of Bahari Project.
Why have they caluclated the 6-15 year discount factor as 5.889 x .593, would it be wrong to take the 6-15 year discount factor as : 7.191 (15 year annuity factor of 11%) – 3.696 (5 year annuity factor) this gives 3.495.
I’m confused as to whether I have my basics in anuuity factor calculations wrong.
What you are doing is fine – you can calculate the factor either way.
(They end up a tiny bit different (0.003) but this is simply due to the fact that the tables are rounded to 3 decimal places, and that does not lose any marks in the exam.)
I noticed the small difference, but was still not sure if my method was right, Thank You for clearing my doubt.
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