vinayak c. chavan (CPT passed) (1011 Points)
20 June 2011What is the use of present value & future value tables in IPCC studies? How can be it treated in exams? How does this tables helps in solving problems?
krishnakumar
(gm)
(153 Points)
Replied 20 June 2011
Present values and future values tables are useful while solving decision making problems in costing and financial management. It is very simple concept if you are having Rs.1000 today and deposit in a bank after one year you will be having Rs.1100 @ 10 % interest. the present value is Rs.1000/- the future value is Rs.1100/- The 10 % is the discounting factor to find present value.
Beacues the time value of the money is important due to inflation. For Rs.100 you won't get the same patrol after 6 months ..
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