Dec 08 question Rupab co. (KP kit q.no 51)

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  • Avatar of rimx
    rimx
    Participant
    • Topics: 31
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    Hi,

    In this question how the NPV is calculated for the investment appraisal to +500 as the PV is making up an NPV of -1 ?


    Avatar of johnmoffat
    John Moffat
    Keymaster
    • Topics: 3
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    Check you additions again – the total of the PV’s comes to +0.5

    Don’t forget that all the cash flows are in $’000′s and so the actual result is +0.5 x 1,000 = +500.

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