161 162 The following information is required for Questions 21 and 22. 163 A discount rate of 8.1% per annum is being used to calculate the Net Present Value (NPV) of a project. 164 The table below shows a student's attempt to find the NPV. 165 Unfortunately a significant error has occurred in one of the discount factors (DF) and hence the PV for that year. 166 167 Year Cash In Cash Out Cashflow DF PV 168 0 0 1500 -1500 1 -1500 169 1 1100 200 900 0.92507 832.56 170 2 1000 300 700 0.85575 599.03 171 3 900 400 500 1.26321 631.61 172 4 800 400 400 0.73231 292.92 173 174 Question 21 175 Decide in which Year the error occurred and state the correct discount factor. (to 5 d.p.) Only the discount factor is required. 176 177 Question 22 178 For the Year in which the error occurred, work out the correct PV. (to 2 d.p.) 179 180 181 Question 23 182 Copy and paste this table elsewhere to find the Net Present Value (NPV) of the whole project using a discount rate of 9.3%. 183 184 Year Cash In Cash Out Cashflow DF PV 185 0 0 2800 -2800 1 -2800 186 1 2100 100 187 2 1200 200 188 3 1100 300 189 (to 2 d.p.) 190 205 Question 26 206 The average age of the 20 senior staff in a company is 47 years, and for the 60 junior staff it is 31 years. 207 What is the average age of all the staff in the company? 208 (to 1 d.p.) 209 210 Question 27 211 Imran's pension is index-linked to the RPI. 212 The value of the RPI was 265.5 in January 2017 and 290.6 in January 2020. 213 The pension in January 2017 was 743.00. 214 215 How much was the pension in January 2020? (to 2 d.p.) 216 217 218 Question 28 219 In April 2020, when the RPI was 291.7, Kate's house contents cover was 22300. 220 Based on an estimate of the RPI for April 2021, the insurance company has predicted 221 that house contents cover of 22740 will be required at that time. 222 223 What value for the RPI did the company use as their estimate for April 2021? 224 (to 1 d.p.) 225