Level 4 - Standard Costing Direct Costs
Comments
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Hi @LouboutinLou1
The Present value is worked out by multiplying the Net Cashflow by discount factor
Year 0 : -1,900 x 1.000 = -1,900
Year 1 : -1,900 x 0.909 = -1,727 (rounded)
Year 2 : -4,650 x 0.826 = -3,841 (rounded)
Year 3 : 2,250 x 0.751 = 1,690 (rounded)
Year 4 : 4,200 x 0.683 = 2,869 (rounded)
Year 5 : 3,500 x 0.621 = 2,174 (rounded)
The totals just add everything up0 -
Hi @LouboutinLou1
I hope this has helped you, sorry it's not in great detail it's just because I'm using my phone to answer the question makes it a bit harder to write in detail. However I hope this has helped and hopefully it should support you in answering other questions.
Kind regards
Shamil0 -
Good morning,
Thank you so much for this it really is appreciated. It makes perfect sense when its broken down this way
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Hi @LouboutinLou1
No worries you are most welcome. Glad it has helped you out 🙂.
Kind regards
Shamil0
