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Discount Factor Template

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Rashan Jida Reshan
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175 views5 pages

Discount Factor Template

Uploaded by

Rashan Jida Reshan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Discount Factor Template Strictly Confidential

Notes
This Excel model is for educational purposes only and should not be used for any other reason.
All content is Copyright material of CFI Education Inc.
https://corporatefinanceinstitute.com/

© 2019 CFI Education Inc.


All rights reserved.  The contents of this publication, including but not limited to all written material, content layout, images, formulas, and code, are protected under international copyright and trademark laws.  
No part of this publication may be modified, manipulated, reproduced, distributed, or transmitted in any form by any means, including photocopying, recording, or other electronic or mechanical methods,
© Corporate Finance Institute®. All rights reserved.
Discount Factor

Discount Rate 10%

Period Start 1 2 3 4 5

Discount Factor 0.909 0.826 0.751 0.683 0.621

Undiscounted Cash Flow 120,000.0 120,000.0 120,000.0 120,000.0 120,000.0

Discounted Cash Flow 109,090.9 99,173.6 90,157.8 81,961.6 74,510.6

NPV (Sum) 737,348.1

NPV (Excel function) 737,348.1

Check -

This file is for educational purposes only. E&OE

Corporate Finance Institute®


https://corporatefinanceinstitute.com/
6 7 8 9 10

0.564 0.513 0.467 0.424 0.386

120,000.0 120,000.0 120,000.0 120,000.0 120,000.0

67,736.9 61,579.0 55,980.9 50,891.7 46,265.2


© Corporate Finance Institute®. All rights reserved.
Discount Factor

Discount Rate 10%

Period Start 1 2 3 4 5

Dates 6/30/2018 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022

# of Days in Period 184 365 366 365 365


Fraction of 1 Year 0.5 1.0 1.0 1.0 1.0
Cumulative Years 0.5 1.5 2.5 3.5 4.5

Discount Factor 0.953 0.866 0.787 0.716 0.651

Undiscounted Cash Fl 0 120,000.0 120,000.0 120,000.0 120,000.0 120,000.0

Discounted Cash Flow 114,370.7 103,973.4 94,496.6 85,906.0 78,096.3

NPV (Sum) 772,830.7

XNPV (Excel Function) 772,830.7

Check -

https://corporatefinanceinstitute.com/
6 7 8 9 10

12/31/2023 12/31/2024 12/31/2025 12/31/2026 12/31/2027

365 366 365 365 365


1.0 1.0 1.0 1.0 1.0
5.5 6.5 7.5 8.5 9.5

0.592 0.538 0.489 0.444 0.404

120,000.0 120,000.0 120,000.0 120,000.0 120,000.0

70,996.7 64,525.6 58,659.6 53,326.9 48,479.0

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