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Nente co June 2012

This topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.

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August 24, 2017 at 6:50 am #403272
parisnaaa
Member
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Hi
In a, why 1180 isn’t discounted by 11% discount rate for four years?
August 24, 2017 at 3:28 pm #403332
John Moffat
Keymaster
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It has been discounted at 11%.
However why on earth should it be discounted for 4 years? It is a perpetuity inflating at 2.06% per year, and has been discounted accordingly.
August 24, 2017 at 5:41 pm #403366
parisnaaa
Member
- Topics: 32
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Thank you for the reply but i dont get where $13417 has already been discounted. After 4 years it will go to perpetuity so for that dont we need to discount $13417 like in other M/A questions?If not then ,why? Please do explain me in detail so that I can understand.
August 25, 2017 at 6:58 am #403408
John Moffat
Keymaster
- Topics: 57
- Replies: 54478
The only mention of 4 years in the question refers to the past 4 years – not to the future. It is immediately a perpetuity in the future.
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