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Npv

Iirene9y ago
Hi sir I would like to ask npv formula is use cashinflow minus outflow right? Would like to ask for pass year june 2009 que of npv on F4U it ask us to do the npv calculation, wonder why the cash inflow is calculate oen year ? Seem que mention is 6 year? One year cash inflow is 2,520,000 then it times discount factor 6 years... i wonder why not 2,520,000 times 6 years for cash inflow? Kindly advise, thanks
kengarrettkengarrettTutor9y ago#1
The 6 year cumulative discount factor of 4.231 is used. Thos saves time compared to writing out all 6 years of income and discounting each flow.
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