Discount Factors This is the table that shows you the discount factors based on the interest rate and the number of years. E.g. at 10% in year 3 - discount factor is 0.7513. n/i 1 1% 0.9901 2% 0.9804 2 0.9803 0.9612 3 0.9706 0.9423 4 5 6 0.9420 0.8880 0.8375 3% 0.9709 0.9426 0.9246 0.9070 0.8900 0.9151 0.8890 0.8638 0.8396 0.9610 0.9238 0.8885 0.8548 0.8227 0.7921 0.9515 0.9057 0.8626 0.8219 0.7835 0.7473 0.7050 4% 0.9615 5% 0.9524 6% 0.9434 0.7903 0.7462 7 0.9327 0.8706 0.8131 0.7599 0.7107 8 0.9235 0.8535 0.7894 0.7307 0.6768 9 0.9143 0.8368 0.7664 0.7026 0.6446 0.6651 0.6274 0.5919 10 0.9053 0.8203 0.7441 0.6756 0.6139 0.5584 11 0.8963 0.8043 0.7224 0.6496 0.5847 0.5268 12 0.8874 0.7885 0.7014 0.6246 0.5568 0.4970 13 0.8787 0.7730 0.6810 0.6006 0.5303 0.4688 0.4150 14 0.8700 0.7579 0.6611 0.5775 0.5051 0.4423 0.3878 0.3405 15 0.8613 0.7430 0.6419 16 0.8528 0.7284 17 0.8444 0.7142 18 24 25 26 28 29 222222222222 19 20 0.2145 21 23 0.7876 27 0.7493 30 0.7419 0.6217 0.4919 0.3901 0.7798 0.6095 0.7720 0.5976 0.7644 0.5859 0.7568 0.5744 0.4371 0.5631 0.4243 0.5521 0.4120 0.2330 0.1842 0.1460 0.2198 0.1722 0.1352 0.2678 0.2074 0.1609 0.1252 0.2551 0.1956 0.1504 0.1159 0.2429 0.1846 0.1406 0.1073 0.1741 0.1314 0.0994 7% 8% 14% 0.9346 0.9259 0.8772 0.8734 0.8573 0.8417 0.8264 0.8116 0.7972 0.7831 0.7695 0.7561 0.8163 0.7938 0.7722 0.7513 0.7312 0.7118 0.6931 0.6750 0.6575 0.7629 0.7350 0.7084 0.6830 0.6587 0.6355 0.6133 0.5921 0.5718 0.7130 0.6806 0.6499 0.6209 0.5935 0.5674 0.5428 0.5194 0.4972 0.6663 0.6302 0.5963 0.5645 0.5346 0.5066 0.4803 0.4556 0.4323 0.6227 0.5835 0.5470 0.5132 0.4817 0.4523 0.4251 0.3996 0.3759 0.5820 0.5403 0.5019 0.4665 0.4339 0.4039 0.3762 0.3506 0.3269 0.5439 0.5002 0.4604 0.4241 0.3909 0.5083 0.4632 0.4224 0.3855 0.3522 0.3220 0.4751| 0.4289 0.3875 0.3505 0.3173 0.2875 0.4440 0.3971 0.3555 0.3186 0.2858 0.2567 0.3677 0.3262 0.2897 0.2575 0.2292 0.2992 0.2633 0.2320 0.2046 0.1807 0.1597 0.1413 0.5553 0.4810 0.4173 0.3624 0.3152 0.2745 0.2394 0.2090 0.1827 0.1599 0.1401 0.1229 0.6232 0.5339 0.4581 0.3936 0.3387 0.2919 0.2519 0.2176 0.1883 0.1631 0.1415 0.1229 0.1069 0.6050 0.5134 0.4363 0.3714 0.3166 0.2703 0.2311 0.1978 0.1696 0.1456 0.1252 0.1078 0.0929 0.8360 0.7002 0.5874 0.4936 0.4155 0.3503 0.2959 0.2502 0.2120 0.1799 0.1528 0.1300 0.1108 0.0946 0.0808 0.8277 0.6864 0.5703 0.4746 0.3957 0.3305 0.2765 0.2317 0.1635 0.1377 0.1161 0.0981 0.0829 0.0703 0.8195 0.6730 0.5537 0.4564 0.3769 0.3118 0.2584 0.1486 0.1240 0.1037 0.0868 0.0728 0.0611 0.8114 0.6598 0.5375 0.4388 0.3589 0.2942 0.2415 0.1987 0.1637 0.1351 0.1117 0.0926 0.0768 0.0638 0.0531 0.8034 0.6468 0.5219 0.4220 0.3418 0.2775 0.2257 0.1839 0.1502 0.1228 0.1007 0.0826 0.0680 0.0560 0.0462 0.7954 0.6342 0.5067 0.4057 0.3256 0.2618 0.2109 0.1703 0.1378 0.1117 0.0907 0.0738 0.0601 0.0491 0.0402 0.3101 0.2470 0.1971 0.1577 0.1264 0.1015 0.0817 0.0659 0.0532 0.0431 0.0349 0.4776 0.3751 0.2953 0.1160 0.0923 0.0736 0.0588 0.0471 0.0378 0.0304 0.4637 0.3607 0.2812 0.1064 0.0839 0.0663 0.0525 0.0417 0.0331 0.0264 0.4502 0.3468 0.0976 0.0763 0.0597 0.3335 0.0895 0.0693 0.0538 0.3207 0.0822 0.0630 0.0485 0.3083 0.2314 0.0573 0.0437 9% 0.9174 10% 0.9091 11% 12% 0.9009 0.8929 13% 15% 0.8850 0.8696 0.3606 0.3329 0.3075 0.2843 0.2946 0.2697 0.2472 0.2607 0.2366 0.2149 0.2307 0.2076 0.1869 0.2042 0.1821 0.1625 0.1945 0.1784 0.0754 0.0469 0.0369 0.0291 0.0230 0.0419 0.0326 0.0255 0.0374 0.0289 0.0224 0.0334 0.0200 0.0174 0.0256 0.0196 0.0151
Discount Factors This is the table that shows you the discount factors based on the interest rate and the number of years. E.g. at 10% in year 3 - discount factor is 0.7513. n/i 1 1% 0.9901 2% 0.9804 2 0.9803 0.9612 3 0.9706 0.9423 4 5 6 0.9420 0.8880 0.8375 3% 0.9709 0.9426 0.9246 0.9070 0.8900 0.9151 0.8890 0.8638 0.8396 0.9610 0.9238 0.8885 0.8548 0.8227 0.7921 0.9515 0.9057 0.8626 0.8219 0.7835 0.7473 0.7050 4% 0.9615 5% 0.9524 6% 0.9434 0.7903 0.7462 7 0.9327 0.8706 0.8131 0.7599 0.7107 8 0.9235 0.8535 0.7894 0.7307 0.6768 9 0.9143 0.8368 0.7664 0.7026 0.6446 0.6651 0.6274 0.5919 10 0.9053 0.8203 0.7441 0.6756 0.6139 0.5584 11 0.8963 0.8043 0.7224 0.6496 0.5847 0.5268 12 0.8874 0.7885 0.7014 0.6246 0.5568 0.4970 13 0.8787 0.7730 0.6810 0.6006 0.5303 0.4688 0.4150 14 0.8700 0.7579 0.6611 0.5775 0.5051 0.4423 0.3878 0.3405 15 0.8613 0.7430 0.6419 16 0.8528 0.7284 17 0.8444 0.7142 18 24 25 26 28 29 222222222222 19 20 0.2145 21 23 0.7876 27 0.7493 30 0.7419 0.6217 0.4919 0.3901 0.7798 0.6095 0.7720 0.5976 0.7644 0.5859 0.7568 0.5744 0.4371 0.5631 0.4243 0.5521 0.4120 0.2330 0.1842 0.1460 0.2198 0.1722 0.1352 0.2678 0.2074 0.1609 0.1252 0.2551 0.1956 0.1504 0.1159 0.2429 0.1846 0.1406 0.1073 0.1741 0.1314 0.0994 7% 8% 14% 0.9346 0.9259 0.8772 0.8734 0.8573 0.8417 0.8264 0.8116 0.7972 0.7831 0.7695 0.7561 0.8163 0.7938 0.7722 0.7513 0.7312 0.7118 0.6931 0.6750 0.6575 0.7629 0.7350 0.7084 0.6830 0.6587 0.6355 0.6133 0.5921 0.5718 0.7130 0.6806 0.6499 0.6209 0.5935 0.5674 0.5428 0.5194 0.4972 0.6663 0.6302 0.5963 0.5645 0.5346 0.5066 0.4803 0.4556 0.4323 0.6227 0.5835 0.5470 0.5132 0.4817 0.4523 0.4251 0.3996 0.3759 0.5820 0.5403 0.5019 0.4665 0.4339 0.4039 0.3762 0.3506 0.3269 0.5439 0.5002 0.4604 0.4241 0.3909 0.5083 0.4632 0.4224 0.3855 0.3522 0.3220 0.4751| 0.4289 0.3875 0.3505 0.3173 0.2875 0.4440 0.3971 0.3555 0.3186 0.2858 0.2567 0.3677 0.3262 0.2897 0.2575 0.2292 0.2992 0.2633 0.2320 0.2046 0.1807 0.1597 0.1413 0.5553 0.4810 0.4173 0.3624 0.3152 0.2745 0.2394 0.2090 0.1827 0.1599 0.1401 0.1229 0.6232 0.5339 0.4581 0.3936 0.3387 0.2919 0.2519 0.2176 0.1883 0.1631 0.1415 0.1229 0.1069 0.6050 0.5134 0.4363 0.3714 0.3166 0.2703 0.2311 0.1978 0.1696 0.1456 0.1252 0.1078 0.0929 0.8360 0.7002 0.5874 0.4936 0.4155 0.3503 0.2959 0.2502 0.2120 0.1799 0.1528 0.1300 0.1108 0.0946 0.0808 0.8277 0.6864 0.5703 0.4746 0.3957 0.3305 0.2765 0.2317 0.1635 0.1377 0.1161 0.0981 0.0829 0.0703 0.8195 0.6730 0.5537 0.4564 0.3769 0.3118 0.2584 0.1486 0.1240 0.1037 0.0868 0.0728 0.0611 0.8114 0.6598 0.5375 0.4388 0.3589 0.2942 0.2415 0.1987 0.1637 0.1351 0.1117 0.0926 0.0768 0.0638 0.0531 0.8034 0.6468 0.5219 0.4220 0.3418 0.2775 0.2257 0.1839 0.1502 0.1228 0.1007 0.0826 0.0680 0.0560 0.0462 0.7954 0.6342 0.5067 0.4057 0.3256 0.2618 0.2109 0.1703 0.1378 0.1117 0.0907 0.0738 0.0601 0.0491 0.0402 0.3101 0.2470 0.1971 0.1577 0.1264 0.1015 0.0817 0.0659 0.0532 0.0431 0.0349 0.4776 0.3751 0.2953 0.1160 0.0923 0.0736 0.0588 0.0471 0.0378 0.0304 0.4637 0.3607 0.2812 0.1064 0.0839 0.0663 0.0525 0.0417 0.0331 0.0264 0.4502 0.3468 0.0976 0.0763 0.0597 0.3335 0.0895 0.0693 0.0538 0.3207 0.0822 0.0630 0.0485 0.3083 0.2314 0.0573 0.0437 9% 0.9174 10% 0.9091 11% 12% 0.9009 0.8929 13% 15% 0.8850 0.8696 0.3606 0.3329 0.3075 0.2843 0.2946 0.2697 0.2472 0.2607 0.2366 0.2149 0.2307 0.2076 0.1869 0.2042 0.1821 0.1625 0.1945 0.1784 0.0754 0.0469 0.0369 0.0291 0.0230 0.0419 0.0326 0.0255 0.0374 0.0289 0.0224 0.0334 0.0200 0.0174 0.0256 0.0196 0.0151
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
Related questions
Question
Answer the questions in this section.
Important note: Questions that require diagrams can be answered on a Word document. Ensure that your answers are clearly labelled.
QUESTION:
Manufacturers is considering renovating their offices at their head office.
1. Use the generated information to calculate the
Investment required R200 000
Expected economic lifetime 5years.
Minimum required
Net annual cash inflows
1st year R40 000
2nd year R100 000
3rd year R90 000
4th year R40 000
5th year R30 000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON