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Present Value Tables

In order to simplify the present value calculations, tables are readily available for various ranges of i and n. Table A-3 in the Appendix gives the present value factors for various discount rates and years. Since the factors in Table A-3 give the present value of one rupee for various combinations of i and n, we can find the present value of the future lump sum by multiplying it with the appropriate present value interest factor (PVIF) from Table A-3. In terms of a formula, it will be:

P= A (PVIF)

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