A1 DISCOUNT TABLES
The tables in this appendix are referred to in the text. Brief descriptions, the formula from which it is derived and a numeric example follow for each table.
THE PRESENT VALUE OF A LUMP SUM
Table A1.1 gives the present value (PV) of a lump sum of CU1 receivable or payable n years in the future discounted at rate i.
Example
The present value of a lump sum of CU1 receivable or payable three years in the future discounted at eight per cent is given by
PV = (1 + 0.08)−3 = CU0.7938
THE PRESENT VALUE OF AN ANNUITY
An annuity is a series of equal annual receipts or payments, such as amounts due under leases. In practice, the term ...
Get Finance for IT Decision Makers, 3rd Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
