Table 2-1 shows the example of 'Cash Flow A'. The original investment was £11,000 for the project, which has an expected return of £25,000 over 5 years with the discount rate 7%. Calculate the discount factor for year 2, 3, 4 and 5, as denoted by (?) in Table 2-1. [Table 2-1] Example of Cash Flow A Year Discount Factor (in four decimal places) 1/1.07 -0.9346 (?) (?) (?) (?) 1 2 3 4 5 Total NPV Cash Flow A (€) 3500 4500 6000 6000 5000 25,000 PVA (£) (??) (??) (??) (??) (??) (??) (??)

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Table 2-1 shows the example of 'Cash Flow A'. The original investment was
£11,000 for the project, which has an expected return of £25,000 over 5 years
with the discount rate 7%.
[Table 2-1] Example of Cash Flow A
Year
Discount Factor (in
four decimal places)
1/1.07=0.9346
(?)
(?)
(?)
(?)
1
2
Calculate the discount factor for year 2, 3, 4 and 5, as denoted by (?) in
Table 2-1.
WN
3
4
5
Total
NPV
Cash Flow A (£)
3500
4500
6000
6000
5000
25,000
PV A (€)
(??)
(??)
(??)
(??)
(??)
(??)
(??)
Transcribed Image Text:Table 2-1 shows the example of 'Cash Flow A'. The original investment was £11,000 for the project, which has an expected return of £25,000 over 5 years with the discount rate 7%. [Table 2-1] Example of Cash Flow A Year Discount Factor (in four decimal places) 1/1.07=0.9346 (?) (?) (?) (?) 1 2 Calculate the discount factor for year 2, 3, 4 and 5, as denoted by (?) in Table 2-1. WN 3 4 5 Total NPV Cash Flow A (£) 3500 4500 6000 6000 5000 25,000 PV A (€) (??) (??) (??) (??) (??) (??) (??)
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