Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Investment Appraisal
- This topic has 3 replies, 2 voices, and was last updated 9 years ago by John Moffat.
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- July 26, 2015 at 1:23 pm #262212
How to solve problem like this……
Initial investment. $ 300.000
Expected life 5 years
Additional revenue from the project per year $ 120.000
Incremental cost of the project . $ 30.000
Cost of capital is 10%
Calculate NPV of the project to the nearest $
Calculate the Accounting Rate of Return%
Calculate the payback period for the project
Mr MoffatJuly 27, 2015 at 8:00 am #262424You need to watch the free lectures – the lectures on Interest and on Investment Appraisal go through how to calculate these three things (and I cannot type out the whole lecture here 🙂 )
July 29, 2015 at 5:16 pm #262766Thank you sir. I want to say bravo to you for successfully helping me with your lectures on FMA/F2 which i sat on Monday and be pleased to pass the exams. May God bless you and give you the strength to carry on.
July 29, 2015 at 10:36 pm #262870That’s great. Thank you for letting us know, and many congratulations 🙂
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