how did you calculate the present value factor

Question A company is considering a project that requires an initial outlay of 1,500 SEK. The project will produ a first cash-flow of 400 SEK at the end of year 1 and then the subsequent yearly cash-flows will gro at a rate of 2% per year. The project has a lifespan of 6 years. Suppose that you know that the EAR is equal to 4%. What is the EAA of this project? 100% (1 rati Expert Answer Chanikya d answered this 2,400 answers Solution: EAA of project = (r*NPV)/(1-(1+r)") r= annual interest rate=4% n=number of years = 6 years EAA of project = (0.04*700)/(1-(1+0.04)*) = 28/(1-1.04) = 28/(1-0.790315) = 28/ 0.209686 EAA of project=133.533 SEK Note: Year Computation Cash Flow for the year Present value factor@ 4% Discounted cash flows 0 -1500 SEK -1,500.00 SEK 1.00 -1,500.00 SEK 1 400 SEK 400.00 SEK 0.9615 384.62 SEK 2 400 SEK*1.02 408.00 SEK 0.9246 377.22 SEK 3 400 SEK*1.02 416.16 SEK 0.8890 369.96 SEK 4 400 SEK*1.02 424.48 SEK 0.8548 362.85 SEK 5 400 SEK*1.02* 432.97 SEK 0.8219 355.87 SEK 6 400 SEK 1.025 441.63 SEK 0.7903 349.03 SEK Net present value (NPV)= 700 SEK