1. 

   Srijana Raghunath Member

   In solution, under the heading Incremental cashflows and NPV, 10 year annuity factor is given as 6.33. How is that calculated?

    

   Srijana Raghunath, Aug 30, 2017

   #1
2. 

   Simon James ActEd Tutor Staff Member

   Hi - this looks like an annuity payable in advance at 12% for 10 years.
   
   According to tables a(10) @12% = 5.65 (ie in arrears). So 5.65 *1.12 = 6.33 (in advance)

    

   Simon James, Sep 1, 2017

   #2
3. 

   Srijana Raghunath Member

   
   Ok..i did not realise it would be annuity-due. Thanks.

    

   Srijana Raghunath, Sep 2, 2017

   #3

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in