Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Year Cashflows Discount factor @11% Discounted cashflows 0 -70000 1 -70000 1 10000 0.901 9010 2 25000 0.812 20300 3 30000 0.731 21930 4 20000
| Year | Cashflows | Discount factor @11% | Discounted cashflows |
| 0 | -70000 | 1 | -70000 |
| 1 | 10000 | 0.901 | 9010 |
| 2 | 25000 | 0.812 | 20300 |
| 3 | 30000 | 0.731 | 21930 |
| 4 | 20000 | 0.659 | 13180 |
| 5 | 2000 | 0.593 | 1186 |
How is the discount factor calculate?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Survey of Accounting
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
3rd Edition
978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856
