December 2012 Q4 part a

Hi
in this question it clearly states that operational cashflows of project pdur 05 will begin at the END of the year 4, so doesn’t that mean the discount factor at 11 percent for year 4 from the table should be applied i.e .659 since it’s the end of year 4 not start, but they have applied the factor of year 3 i.e .731? Why is that?

Thanks