We have to calculate the discount factor when the discount rate is 10% and the period is 2.

Discount Rate 10%

Period 2

Discount Factor is calculated using the formula given below

Discount Factor = 1 / (1 * (1 + Discount Rate)Period Number)

Discount Factor 0.83

We have to calculate net present value and discount factor for a period of 7 months,
the discount rate for same is 8% and undiscounted cash flow is $100,000.

Discount Rate 8%

Period 1 2 3 4 5 6
Undiscounted Cash Flow $100,000 $100,000 $100,000 $100,000 $100,000 $100,000

Discount Factor 0.93 0.86 0.79 0.74 0.68 0.63

Discounted Cash Flow 92,592.6 85,733.9 79,383.2 73,503.0 68,058.3 63,017.0

Net Present Value 520,637.0

 7
$100,000

0.58

58,349.0
We have to calculate the net present value with manual formula and excel function and
discount factor for a period of 7 months, the discount rate for same is 8%
and undiscounted cash flow is $100,000.

Discount Rate 8%

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 184 365 366 365 365
Period
Fraction of 1 0.5 1.0 1.0 1.0 1.0
Year
Cumulative 0.5 1.5 2.5 3.5 4.5
Years

Discount 0.96 0.89 0.82 0.76 0.71

Factor

Undiscounted 0 100,000 100,000 100,000 100,000 100,000

Cash Flow

Discounted 96,194.62 89,069.09 82,453.99 76,346.29 70,691.01

Cash Flow

Net Present
Value 540,803

XNPV 540,803
 6 7
12/31/2023 12/31/2024
365 366

1.0 1.0

5.5 6.5

0.65 0.61

100,000 100,000

65,454.64 60,593.37