1.10. SPPWF stands for the Single Payment Present worth Factor and USPWF
stands for the Uniform Series of Present Worth Factors. The tables are
enclosed to these reading materials.SPPWF Table
1.11. The SPPWF table is prepared on the present value of Re.1.1.12. The first vertical column shows years up to 50 years.1.13. The first horizontal column shows discount factors upto 50 %1.14. Overall, the SPPWF table shows the returns on a single rupee receivable in
future at the end of different years (upto 50 Years) and at the different
discount factors. Therefore, there is no need to use the formula to find out
the present value of a single rupee for each year and for each discount factor.1.15. For example, to calculate the present value of Rs.10, 000 at the end of the 9th
year at the discount factor of 15%, we can use the SPPWF table, without
having to use the formula.“Go to 9th year in the first vertical column, go to 15 % Discount Factor on
the first horizontal column. Both straight lines will meet at 0.2843. To get
the PV of Rs.10, 000,= Rs.10,000 X 0.2843
= Rs.2,843.This means, that the Present Value of Rs.10, 000 receivable in future i.e., at
the end of the 9th year is Rs.2, 843.1.16. Where the investment amount or the return amount or both investment and
return amounts varies from time to time (i.e., not being constant from y ear to
year) the SPPWF table must be applied.USPWF table
1.17. If the investment amount or return amount or both investment and return
amounts are constant from year to year or for a group of years, the USPWF
table must be used for speedy calculation.1.18. For example, if the return of Rs.10,000 is constant per year, say for 10 years
at the discount factor of 15% P.A., the use of the SPPWF table to calculate
the PV will be a long and laborious process, as is obvious from the example
below: