General Discounting (e.g Perp/Annuity/EAC, 1 month DF)

Question 1

If cost of capital is done by month

Answer 1

Take the discount factor and use the formula:

1.12^1(/12)-1 = R

Then use PV of cashflow (1+r)^-n

Question 2

Annuity Factor Formula

Answer 2

1-(1+r)^-n/R