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Sir can u pls tell me for discount factor for last year from where did the figure .043 came.Thanks
Sir in same question while calculating sensitive anaysis for decomissioning cost its 122.2/.1571=777.8 from where did the figure .1571 came.Please clarify.
Many thanks.First question:
It is the discount factor for 33 years at 10%. (1/1.10)^33 = 0.043
Second question:
Because in this part they are looking at current price values, the real cost of capital is 1.1/1.04 – 1 = 5.7692%
The discount factor for 33 years at 5.7692 is (1/1.057692)^33 = 0.1571
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