Q 7.12 page 13 of chapter 7

Discussion in 'CT1' started by shdh, Jun 23, 2016.

  1. shdh

    shdh Ton up Member

    Hi guys,

    I need some help here in understanding that where did the 't' vanish while calculating in PV of the investment? Why did we do so?
    (Q7.12 page 13 of chapter 7)
    Any help would be great.

    Thanks a lot,
    Warm Regards
    Shyam
     
  2. Varsha Agarwal

    Varsha Agarwal Very Active Member

    Investment of 20t is made at time t,which means cashflows are increasing by 20 every year continously.
     
  3. shdh

    shdh Ton up Member

    Ooh!! Yes.. t is time....I missed out this point...
    Thanks for help!
     

Share This Page