If the cost of capital is 7.9% per year, what is the discount factor for a...

Question

Question

If the cost of capital is 7.9% per year, what is the discount factor for a cash flow occurring in 7 years?

A. 0.4470

B.

0.5873

C.

1.7027

D.

0.9210

business finance

Answer 1

Answer #1

B.0.5873

Working:

Discount factor for a cash flow occurring in 7 years	=	(1+i)^-n	Where,
	=	(1+0.079)^-7	i	0.079
	=	0.5873	n	7

Answer 2

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