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Hi i dnt understand when i m calculating
NPV how many decimal places i should use in calculating differnt figure. Discount factors etcRounding is not very relevant in P4 – the marks are for the approach not for the final answer.
For discount factors, usually we use the tables which are to three decimal places. If you need to calculate a discount factor yourself, then go to three decimal places.
For cash flows, usually to to the nearest thousand, but this is not a fast rule – you are expected to use your own judgement.
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