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Sir can u please tell why have we discounted subsidized loan benefit by annuity factor of 1_4 as we have not discounted subsidized loan benefit in any of the previous questions of APV like burung co i understand for tax relief we discounted at 2_5 annuity factor but why to multiply subssidized loan benefit by 3.546
Both Tippletine and Burung have wealth with the subsidy benefit in the same way. In both questions they get the interest saving for 4 years and so in both cases it has been discounted by multiplying by the 4 year annuity factor (at 5% in the case of Tippletine and at 4% in the case of Burung).
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