CHART 1
Payment due In: (years from start)
Lump sum payments due in the period
Amount committed
Discount faclor
(Previous column x 50%)
NPV (le, amount available
Hypothetical rate
of Interest on
for investment)
Investment
(HK$ 000)
Value of Investiment
on retirement
(HK$ 000)
Surplus/(shortfall)
(le. value on retirement minus sum committed)
(HK$ 000)
1
200,000
100,000
0.9449
94,490
5.00%
99,215
(786)
2
200,000
100,000
0.8661
86,610
5.92%
97,168
(2,832)
3
300,000
150,000
0.7801
117,015
6.40%
140,950
(9,050)
11
4
300,000
150,000
0.7012
105,180
6.80%
136,842
(13,158)
5
400,000
200,000
0.6300
126,000
7.20%
178,379
(21,621)
6
400,000
200,000
0.5716
114,320
7.35%
174,469
(25,531)
7
500,000
250,000
0.5171
129,275
7.50%
214,474
(35,526)
8
500,000
250,000
0.4679
116,975
7.60%
210,180
(39,820)
9
600,000
300,000
0.4411
132,330
7.70%
257,988
(42,012)
10
600,000
300,000
0.4091
122,730
7.80%
260,099
(39,901)
Total shortfall or subsidy required:
(230,237)
1
!