"I have no idea why you want to use 9%.
UK inflation is 2.5% and so operating flows will increase at 2.5% per year.
52 x 1.025^2 = 54.65
490 x 1.025^3 = 527.68
The PV of the investment phase = 50.07 + 453 + 1987 + 789 + 9731 = 13010"
i asked how we get 50.7,453 ,1987 etc values ??
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75 biplton
9y ago#1You did not ask that at all.
You asked "may i know which all sums are added to get 13010" and I gave you the answer!
The cash flow from the the return phase in 20X5 is 60.
Since this is in 2 years time, discount for 2 years at 9.2%.
60 / (1.092^2) = 50.31
Similarly in 3 years time, 589 / (1.092^3) = 452
The differences are simply due to roundings.
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