From years 1-4 Sales and MC are having SAME CFs for EACH of the 4 years,hence, we will discount these using annuity factor for 4 years at 10% which is 3.17.

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Ken Garrett says

Where are you talking about -notes? Lectures? Where?

bhaven28 says

Around 7:32 on the lecture under the 10% factor it shows as 3.17, 3.17 and then 0.683

Many thanks

bhaven28 says

Hello any update on this please? just need to know how this was worked out

Ken Garrett says

The example is from P159 of the notes where 10% is given as the discount rate to use.

jetavi says

From years 1-4 Sales and MC are having SAME CFs for EACH of the 4 years,hence, we will discount these using annuity factor for 4 years at 10% which is 3.17.

Ken Garrett says

Yes.

bhaven28 says

Hi,

This may just be a refresher, but how do you work out the 10% factor?