The equation to use is: loss per month x present value factor
= present value of loss.
0% Future value sale proceeds $13,439,157 Present value factor
for proceeds 0.
This factor is none other than the present value factor
of a series of income flows that change by a constant rate divided by the present value factor
of the level annuity.
Section L: Present value factor
level annual equivalent (PVFLAE) that is the LAE for constant rate changes
This is accomplished by discounting each after-tax cash flow through the use of present value factors
reflective of the age of the cash flow.
If MP discounting is, in fact, the best fit for a particular property type in terms of computing present value factors
to apply to NOL it follows that values derived by BOP discounting and EOP discounting are both inaccurate to the extreme.