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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Budgeting
Investment is possible in one or more of three projects – expected life 4 years.
a b c
$ $ $
outlay 10000 7000 1250
expected returns 4000 2500 325
(t1 – t4)
The firm can borrow the finance at 10% pa.
Which project(s) should be undertaken?
The correct answer is Project A & B.
when to use pv table when to use annuity table? I tot this question would be using pv table.
You use the annuity discount factors when there is an equal annual cash flow.
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