In: Accounting
a) | |||||
Year | Cash flow | Discount factor | Present value | ||
a | b | c=1.12^-a | b*c | ||
1 | $ 10,000 | 0.8929 | $ 8,928.57 | ||
2 | $ 11,000 | 0.7972 | $ 8,769.13 | ||
3 | $ 12,000 | 0.7118 | $ 8,541.36 | ||
4 | $ 13,000 | 0.6355 | $ 8,261.74 | ||
5 | $ 14,000 | 0.5674 | $ 7,943.98 | ||
6 | $ 15,000 | 0.5066 | $ 7,599.47 | ||
Total | 4.1114 | $ 50,044.24 | |||
b) | |||||
EUAW | = | $ 50,044.24 | / | 4.1114 | |
= | $ 12,172.05 |