Economics #4
4. What type of
discounting does MICA use?
Internally MICA discounts monthly cash flows using an annual discount rate and a non-integer number of years for the time factor. The general form of the equation for the discount factor is:
DF = 1 / (1+i) ^ (n/12)
Specific examples of the discounting method appear in the appendix of both the manual and online help file.
Further, since MICA uses a spreadsheet for reporting purposes, and since the user can program the spreadsheet, you could set up any type of discounting you desire and save the discounting calculation in a report template.
