∆ Explain how SPPWF and USPWF have been constructed and how it can
be used with examples.
∆ Explain the meaning and the purpose IRR
∆ Explain how scientific it is to use IRR to take investment decisions with
calculations and graphs
∆ Explain the meaning of Salvage Value.
∆ Explain how interpolation formulae can be used to determine the IRR
∆ Explain with examples how to calculate NPV
Visual Aid -13: Discounted Cash Flow Technique
Discounted Cash Flow Technique
- Objective and Scope
- Present Value of money
- Common point of time
- FV = PV x (1 + r )n
1 - PV=FV x -----------
(1 + r )n