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Discount factor

This topic has 1 reply, 2 voices, and was last updated 10 years ago by Ken Garrett.

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November 10, 2015 at 8:35 am #281410
biameraj
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- Topics: 13
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Sir!
In qs for calculating npv discount factor of 12.5 is given then from present value table which discount rate will be used of 12? or 13? my answer not coming by applying both rates ?
November 10, 2015 at 8:36 am #281413
Ken Garrett
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- Topics: 10
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You should use 12.5. Therefore you cannot use the tables nd must do it from first principles using the formulae at the top of the tables.
If they had wanted you to use 12 or 13 they would have printed that.
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