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Npv

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › Npv

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by Ken Garrett.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • May 31, 2017 at 12:15 pm #389215
    irenegsy
    Member
    • Topics: 26
    • Replies: 10
    • ☆

    Hi sir

    I would like to ask npv formula is use cashinflow minus outflow right?

    Would like to ask for pass year june 2009 que of npv on F4U it ask us to do the npv calculation, wonder why the cash inflow is calculate oen year ? Seem que mention is 6 year? One year cash inflow is 2,520,000 then it times discount factor 6 years… i wonder why not 2,520,000 times 6 years for cash inflow?

    Kindly advise, thanks

    May 31, 2017 at 6:48 pm #389314
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10653
    • ☆☆☆☆☆

    The 6 year cumulative discount factor of 4.231 is used. Thos saves time compared to writing out all 6 years of income and discounting each flow.

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