But what about interest on deffered cash? Since we discount to present value terms, should not we add interest on deffered cash on our investment? 181,818 ×10%×3÷12×30%? So the answer becomes 638,181.5
HELLO, THANKS FOR THE QUIZ, HOWEVER, ON DEFERRED CASH CALCULATION. THE RIGHT FIGURE SHOULD BE 220,000*1/1.1=200,000. HOW COME IT THE ANSWER IS 181,818?
But what about interest on deffered cash? Since we discount to present value terms, should not we add interest on deffered cash on our investment?
181,818 ×10%×3÷12×30%? So the answer becomes 638,181.5
All is well now, since it is two years period.
HELLO, THANKS FOR THE QUIZ, HOWEVER, ON DEFERRED CASH CALCULATION. THE RIGHT FIGURE SHOULD BE 220,000*1/1.1=200,000. HOW COME IT THE ANSWER IS 181,818?
2 years time