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- This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.

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- March 3, 2022 at 7:41 pm #649763
sir if i use discount factor formula in the spreadsheet to find out the discount factor and use that discount factor to find PV of cash flow then the my ans does not match with the answer in the textbook this is due to the reason that in the textbook they have rounded off the discount factor a lot of times i will get a difference of lets 10$ or sometimes even 15 – 20$

DOUBT – can i use the formula to find the discount factor and use them to find the present value or would marks be deducted since i am no using the value shown in the formula page?

DOUBT – would my marks be deducted for the small difference arising in my ans due to use formula discount rate?

March 4, 2022 at 7:43 am #649787I have no idea what your textbook does, but the tables provided in the exam are rounded to three decimal places.

This does mean there will be a rounding difference is you use either the formula or the spreadsheet function on the spreadsheet. You do not lose marks for rounding (it is irrelevant in the exam just as it is in real life).

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