MAnpv

Present value of annuity for five years is 3.7908 for each future unit. 120000-30000=90000 90000x3.7908=341172 So present value equals 341172-300000=41172 Or alternatively if this annuity value not given only discount factors for each year since cash flows are the same each year it can be worked out by adding up the discount factors 0.9091+0.8264+0.7513+0.6830+0.6209=3.7907 3.7907 is relevant annuity factor to use under this method.Then work out in same way as previously given.

Thanks, sir.

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