ocr: Using. the Formula The Table Thus, looking at the above table, we can say that E133.10 received in three years' time 15 worth €100 now. That is, £133.10 received in three years time has a present value of €100. This IS 50 because if we had £100 today we could invest it at 10% per annum and have E133.10in three years' time. For the purpose ofinvestment appraisal we need to perform the opposite process on cash tows that compounding represents. Compounding translates present values into tuture values. We want to be able to do the opposite of this, that is, we want to be able to translate the tutu ...
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