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APV and NPV

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › APV and NPV

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • June 2, 2018 at 12:58 pm #455509
    thomas1212
    Member
    • Topics: 45
    • Replies: 16
    • ☆☆

    when we simply look at the question and the question is asking us to evaluate whether to proceed with a project.

    However, we know we have 2 methods that pop up in our mind which are APV and NPV

    how do we know whether to calculate NPV or APV or NPV&APV ????

    Because when i look at the past exam questions marks for those 3 instances above are similar to some extent….

    i can’t see to differentiate whether to calculate NPV, APV or NPV&APV…

    June 2, 2018 at 5:11 pm #455564
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54675
    • ☆☆☆☆☆

    The current examiner makes it clear when he wants APV, either by specifically asking for the APV or asking you to discount as though all equity financed (which is the same thing as APV).

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  • The topic ‘APV and NPV’ is closed to new replies.

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