How is Capital Budgeting Used to Make Decisions?

Appendix

Figure 8.9 Present Value of $1 Received at the End of n Periods

Note: $Factor = \dfrac{a}{(1+r)^n}$

Figure 8.10 Present Value of a $1 Annuity Received at the End of Each Period for n Periods

Note: $Factor = \dfrac{1-(1+r)^{-n}}{r}$