Capital Budgeting-Discounting factor calculation

can any one help me ? ?  ??

How to calculate discounting factor on calculator while solving capital budgeting problem.

 

Replies (1)

1) The formula for discounting rate is 1/(1+r/100), where r = rate of interest

 

2)For Eg : If the discounting rate is 10%, then discounting factor  

for 1st year = 1/(1+10/100) = 0.9091

Simply speaking calculate 1/1.1 = 0.9091 on the calculator, then again press '=' on the calculator then you will get the discounting factor for the 2nd year = 0.8264, then agian press '=' sign and you will get discounting factor for the 3rd year 0.7513 and so on.

 

Regards,

Devendra

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 16 July 2026
Article Assistant

G A R U D & Associates

New Delhi

CA Inter

View Details
Company
16 July 2026
Manager - Finance & Accounts

Aliens Group

Hyderabad

CA Final

View Details
Company
ARTICLESHIP 28 July 2026
Article/Intern/Semi-Qualified/Fresher B.Com

VNSS & Co

Mumbai

Others

View Details
Company
ARTICLESHIP 10 July 2026
Article Assistant

N S Gokhale & Co

Thane

CA Inter

View Details
Company
13 July 2026
AVP / VP - PCG Advisory

Workforce Connect

Mumbai

MBA

View Details
Company
31 July 2026
Senior Accountant - Bunia, Democratic Republic of Congo

AD GLOBAL LTD

Mumbai

B.Com

View Details
Company
Featured 16 July 2026
CA Inter, CA Intermediate, CA IPCC, CA CPT, CA SemiQualified

Vakilsearch.com

Chennai

CA Inter

View Details
Company
Featured 18 July 2026
CA Articleship

apricus india

Mumbai

CA Inter

View Details
Follow