Suppose we were given a discounted cost of £12,956.

This was generated using a discount factor of 3.5% and a time-horizon of 45 years.

Is it possible to obtain what the non-discounted cost is today? That is to say, if £12.956 was the outcome of a discounting process, is it possible to attain the cost at time period 1, undiscounted (given this is a once off cost, and nothing to do with revenue and NPV).

For clarity, this is not as part of a test. Instead, it is an intellectual curiosity, where I simplified the figures taken from Page 4, Paragraph 4 of this paper:


All feedback would be appreciated,




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