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WACC and NPV Changes Due to Inflation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › WACC and NPV Changes Due to Inflation

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  • August 26, 2021 at 2:55 am #632949
    alphabetawacc
    Member
    • Topics: 3
    • Replies: 0
    • ☆

    Hi everyone, can someone kindly help me with this problem?
    Explain what would happen to the WACC and the NPV of a firm’s project if the country where the firm is based’s inflation rate were to unexpectedly increase. Why would these things happen?

    August 29, 2021 at 11:20 am #633361
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7065
    • ☆☆☆☆☆

    Hi,

    I think that you’re looking for an answer in the wrong place. This is a forum for FR and not FM.

    Thanks

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