Q.2.21
for finding dpp
working in 000
pv of outgo= -105-105v^0.5 - 105v-200v^15
pv of incoming= (20v+23v^2+26v^3+24v^4)*[1-v^n]/delta +
29*1.03*v^5(1+1.03v+....+1.03^24v^24)
= (20v+23v^2+26v^3+24v^4)*[1-v^-1]/delta +
29*1.03*v^5[1-v^n]/d @ i'
i'=1.08/1.03 -1
npv=-105-105v^0.5 - 105v-200v^15+
(20v+23v^2+26v^3+24v^4)*[1-v^-1]/delta + 29*1.03*v^5[1-v^n]/d @i'
iis term in red colour for which dpp should calculate?
is my equation correct? is my dpp term correct
and how to decide from which point dpp start?
Last edited by a moderator: Apr 10, 2014
