- This topic has 3 replies, 2 voices, and was last updated 3 years ago by John Moffat.
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- November 1, 2021 at 7:49 am #639620
Hie sir .
On question 122 BPP kit
They sayCash flows
T0 investment 100 000
T1-5 Net cash inflow 40 000What is the adjusted payback period for this project.
Here
Their cashflows
Are written as
Time 0 40 000
Time 1 40 000
Time 2 40 000
Time 3 40 000They have separated the 40 000 for each individual year I thought its a net cash flow it will be 40 000 for the whole 3 years
However on question 123
They have the following cash flows
T0 outflow 110 000
T1-4 inflow 40 000Here they are using an aggregate
….My question is why the other question they used individual amount each year and the other they used aggregate
November 1, 2021 at 10:55 am #639638When we write T1-4 40,000 we mean that it is 40,000 in each year from time 1 to time 4. Not that it is 40,000 in total.
November 1, 2021 at 11:00 pm #639710Thank you sir
November 2, 2021 at 6:48 am #639726You are welcome 🙂
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