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DF WK 6

The document outlines expected cash flows over four years, starting with a current salary of $50,000 and a growth rate of 2%. It also details the service leave liability with expected cash flows discounted at a rate of 4%, resulting in a total long service leave liability of $144,304.40 when calculated with present values for each year.

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Selvindra Naidu
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38 views2 pages

DF WK 6

The document outlines expected cash flows over four years, starting with a current salary of $50,000 and a growth rate of 2%. It also details the service leave liability with expected cash flows discounted at a rate of 4%, resulting in a total long service leave liability of $144,304.40 when calculated with present values for each year.

Uploaded by

Selvindra Naidu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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expected Cash Flows:

Years Current Salary Growth Rate Expected Cash Flows

7 50000 2% 51000
8 51000 2% 52020
9 52020 2% 53060
10 53060 2% 54122

Service Leave Liability

Expected Cash Flows Rate Discounting Factor Present Value


1 51000 4% 0.961538 49038.46
2 52020 4% 0.924556 48095.41
3 53060 4% 0.888996 47170.5

Long Service Leave Liability= 144304.4


Present Value

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