P
Paapi
Member
Hi,
Im having trouble understanding the solution in Q11 part (ii). I get the first part of the solution which is finding the PV for the outflows, but I dont understand how they've calculaated the PV for the inflows. Could someone please explain the working for the PV of inflows? Why cant you just calculate the PV for each cashflow and discount to 0? For e.g a(dash)_3+ 1.9 a(dash)_6*v^3 + 2.5 a(dash)_6*v^6+ 8v^15
Thanks in advance!
Im having trouble understanding the solution in Q11 part (ii). I get the first part of the solution which is finding the PV for the outflows, but I dont understand how they've calculaated the PV for the inflows. Could someone please explain the working for the PV of inflows? Why cant you just calculate the PV for each cashflow and discount to 0? For e.g a(dash)_3+ 1.9 a(dash)_6*v^3 + 2.5 a(dash)_6*v^6+ 8v^15
Thanks in advance!