3-12 Present Values Discount Factor = DF=PV of S1 DE (1+r) DIscount Factors can be used to compute the present value of any cash flow. Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 3- 12 Irwin/McGraw-Hill Present Values Discount Factor = DF = PV of $1 Discount Factors can be used to compute the present value of any cash flow. DF r = t + 1 (1 )