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Hi,
How do I know that period for calculation is 4 years. In this question calculaton is for 4 years but why? In another question always we have information that for example cash flow last for 3 year or we have given demand for units for certain number of years to work out cash flow. But in this question nothing. Could you please advice?
And second question. Why in CJ Co example working capital is not recovered in the fourth year?
The question says (towards the end) “….projects to be evaluated over a four-year planning period, ignoring any scrap value and working capital recovery”.
I was doing this exercise from bpp revision kit and there is no such information. But I checked orginal version on exam paper from 2010 and indeed such sentence is added. So bpp probably missed it. Anyway thank you for your help.
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