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I have seen a question, (102 in BPP revision kit) whereby the df used at 10% is 3.17 but they have added 1 to that to get 4.17 and multiplied this by the cash inflows to net present value flows. The paymeng of the cash inflows was in advance so starting in year 0. Is that why they added 1 to the df? Due to the advanced payment?
Thanks
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