How is the discount factor calculated for each year? Year Inflow *201 1 2011 $0 $150,000 $0

How is the discount factor calculated for each year?

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Year Inflow *201 1 2011 $0 $150,000 $0 $100,000 $50,000 $15,000 2012 $25,000 Outflow 2013 $120,000 2014 $300,000 Total $445,000 Table 1 - Project A Cash Flow Analysis *beginning of the year $0 $315,000 Project A Net Flow $(150,000) $(100,000) ($25,000) $105,000 $300,000 $130,000 Discount Factor 1 .892 .797 .711 .635 Net Present Value ($150,000.00 ) ($89,200.00) ($19,925.00) $74,655.00 $190,500.00 $6,030.00 Inflation Rate 0.02 0.02 0.02 0.02 0.02 Year Inflow *201 1 2011 $0 $150,000 $0 $100,000 $50,000 $15,000 2012 $25,000 Outflow 2013 $120,000 2014 $300,000 Total $445,000 Table 1 - Project A Cash Flow Analysis *beginning of the year $0 $315,000 Project A Net Flow $(150,000) $(100,000) ($25,000) $105,000 $300,000 $130,000 Discount Factor 1 .892 .797 .711 .635 Net Present Value ($150,000.00 ) ($89,200.00) ($19,925.00) $74,655.00 $190,500.00 $6,030.00 Inflation Rate 0.02 0.02 0.02 0.02 0.02

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Discount factor 11rn Where r Interes... View the full answer