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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Investment Appraisal & Financing Decisions
i have one question in past ppr December 2009
ASOP CO. Part (B) when calculating NPV we will add license fee as a fixed cost in calculating
operating cash fows??i’m a bit confused my NPV is different than Examiner’s because he had done with a different method but
he added a note which says: (“including the financing cashflows in the NPV evaluation and discounting them by the WACC of 11% is also acceptable”)
The examiners answer is the best (have you watched the free lecture on lease & buy)?
His note is meaning that if you had included all the financing cash flows (so not just the license fee, but all of them) then he would have accepted it.
okay fine Thankyou 🙂
You are welcome 🙂
If you have not already watched, then do watch the free lecture on lease & buy.