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Hello sir
Thanks a lot for your previous answer.
Here some more . 🙂
Z co evaluating a project which will generate cash flows of 2600 each year in years four to eight.
(The first amount will be received in four years from now)What is the present value of the project cash flows using a discount rate of 14%
1) $4485
2) $6024
3) $6822
4) $12061Have you watched our free lectures on interest, because this is covered in our lectures together with examples. I cannot type out all of the lectures here.
To get the discount factor, first look up the 8 year annuity factor and then subtract the 3 year annuity factor.
This will leave you with the factor for years 4 to 8.
(Our lectures are a complete course for Paper F2 and cover everything you need to be able to pass the exam well.)
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