View Full Version : Question 1.5 of the final exam practice questions under the topic NPV
01-03-2007, 05:07 PM
Can anyone explain why they are using a 10% discount rate to calc the PV of the cash flows rather than the calculated real rate of 4%. This question is on the NEAS website in the discussion forum under Final exam and the section of practice questions called NPV.
01-03-2007, 05:24 PM
In the version of the problem that I see on their webpage, they are using 4%. There is a post in the NPV practice problem thread saying that they were using 10% and that that has been corrected, so maybe you are looking at an earlier version? That post is dated in July, so it would have to have been from quite a while ago.
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