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    Discount Factor Template

    Uploaded by

    Rashan Jida Reshan

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Discount Factor Template

    Uploaded by

    Rashan Jida Reshan
    100 views5 pages

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    100 views5 pages

    Discount Factor Template

    Uploaded by

    Rashan Jida Reshan

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 5
    At a glance
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    The document shows a template for calculating net present value using discounted cash flows over multiple time periods.

    A discount rate of 10% is used throughout the model.

    Cash flows are being discounted over a period of 25 years from 2018 to 2027.

    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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