Only for the confusing part for majority that is 5400 So its a concept of delayed annuity if you dont know how to cal it i will tell you Delayed annuity has 2 steps 1st we have to Find the discounted value of casfflows(m 2nd we will multiply this discounted cf with last year df In this question the 5400 is discounted cf so we just need to multiply it with year 4 DF that is 0.636 so we got PV Hope it help others too.
So brother its a concept of delayed annuity if you dont know how to cal it i will tell you Delayed annuity has 2 steps 1st we have to Find the discounted value of casfflows 2nd we will multiply this discounted cf with last year df In this question the 5400 is discounted cf so we just need to multiply it with year 4 DF that is 0.636 so we got PV Hope it help others too.
Nice.thank you
Very well Explained. Thank you sir
Only for the confusing part for majority that is 5400
So its a concept of delayed annuity if you dont know how to cal it i will tell you
Delayed annuity has 2 steps
1st we have to Find the discounted value of casfflows(m
2nd we will multiply this discounted cf with last year df
In this question the 5400 is discounted cf so we just need to multiply it with year 4 DF that is 0.636 so we got PV
Hope it help others too.
can we do the whole answer in just spreadsheet and not in word processor?
Sir how can you take pe as 27000 and pa as 29861. We did all calculation in taking 3 zero common. Isn't it? Npv is 27 after taking 3 zero common.
Where can I get the examiner answer for this question?
Calculation of NPV for 25 years seems to me is wrong, Can you explain me about your calculations.
So brother its a concept of delayed annuity if you dont know how to cal it i will tell you
Delayed annuity has 2 steps
1st we have to Find the discounted value of casfflows
2nd we will multiply this discounted cf with last year df
In this question the 5400 is discounted cf so we just need to multiply it with year 4 DF that is 0.636 so we got PV
Hope it help others too.
@@anasfarooqi3421 but he didn't discount it further to Y0. The value he used i.e. 26369 is PV at Y5.