ACC4100EXERCISE190541106784.docx

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EXERCISE 1 FINANCIAL MODELS Exercise 1
Exercise 1
To calculate the PV, Discount Rate and Return Percentage we use the following formulas: Discount Rate= (1+inflation rate)/100 PV= CF / (Discount Rate ^n) Where: PV = Present Value CF = Cash Flow (either a single cash flow or a series of cash flows) n = Number of periods (the time in which the cash flow occurs) Return % = (Total PV - Investment) / Investment Calculation Sheet:
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