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discount rate year 1 = ( pound sign 100 over pound sign 105 ) = ( 100 over 105 ) = ( 1.00 over 1.05 ) = ( 1 over 1 + 0.05 ) = ( 1 over ( 1 + 0.05 ) to the power 1 )

 3.3.2 Comparisons with other rates of return