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discount factor 1+k1 NPVC0+t1r1+k1C1.pdf

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The document discusses the discount factor and net present value (NPV) formulas. The discount factor formula is shown as 1+k1, where k1 is the discount rate. The NPV formula is given as NPV=C0+t=1r(1+k1)C1, where C0 is the initial cash flow, r is the number of periods, C1 is the cash flow in period 1.

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discount factor =1+k1 NPV=C0+t=1r(1+k1)C1

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