Digunder Dec 2007Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Digunder Dec 2007This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total) AuthorPosts July 31, 2016 at 6:53 pm #330454 sattar786MemberTopics: 24Replies: 23☆Hello sir, could you kindly tell me as in how did the examiner get the current price as $ 28million, since we’re told that npv is $4 million at cost of capital of 10% p.a July 31, 2016 at 8:44 pm #330474 John MoffatKeymasterTopics: 56Replies: 53806☆☆☆☆☆The NPV is $4M, the initial cost is $24M, and therefore the PV of the receipts must be 4 + 24 = $28M.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In