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In nente co b(3) for option to expand why the pv of cash inflow is not discounted for 2 years
Pe in the formula is always the actual exercise price – we don’t discount it.
The reason is that multiplying it by the term containing ‘e’ in the formula is effectively doing the discounting (it is discounting it on a continuous basis rather than in fixed years as we normally do when discounting).
Sir but I was asking for pa as pa is been calculated as taking present value of the project cash inflow
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