ocr: The Net Present Value Method Rather than having to apply this rather cumbersome formula to every tuture cash flow itis common practice to use a present value discount table which natches percentage rates of discount with future years in order to calculate the appropriate discount tactors. Alternatively, spreadsheets have special tunctions which greatly ease the calculation of present values. Year Net Cash Flow Discount Factor PV E 15% E (500,000) 1.000 (500,000) 175,000 0.870 152,250 175,000 0.756 132,300 - - 175,000 0.658 115,150 175,000 0.572 100,100 - - D 175,000 0.497 86,975 NVPat 15% 86,7 ...
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