could somebody explain how the present value factor used in Page number 137 in schwecer book 4 is calculated. For example the present value factor for the first year is .6553 and is calculated by 1/1.526 I have no clue what that 1.526 is. Any comment is highly appreciated.
Thank God… I was able to figure it out. 1/[(1.09 * 1.40)] where the real required rate is 9% and inflation rate is 40%