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  • This topic has 1 reply, 2 voices, and was last updated 12 years ago by MikeLittle.
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  • October 30, 2013 at 10:33 am #144120
    hasanali95
    Member
    • Topics: 239
    • Replies: 248
    • ☆☆☆

    Q26 Electron Pilot paper

    Sir when the present value is given in the qs why has bpp again discounted the provision by doing this 15/1.05?
    Isnt it double discounting?

    October 30, 2013 at 3:32 pm #144150
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    Is this not the question where the project has a present value of 15 million, but the project is already one year into its life.

    What BPP have done, correctly, is get back to the present value of the project one year earlier than the question ie what was the present value of the project at its inception

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