- This topic has 3 replies, 2 voices, and was last updated 3 years ago by
.
- Posts
Hello John,
I am struggling to understand the different approach in the model solutions if the project considered will only start in 1 year’s time:
1. In Washi (Sep 2018) the project is starting in 1 yrs time from now, but the resulting NPV is discounted to the start of the project and not to today’s date as we would normally do;
2. in Hathaway (Mar 2020) – the project again would start only after regulatory approval in 1 yrs time – and here the resulting NPV is discounted to TODAY (assuming the first year of the project is Yr1 i.e. it only starts one year from TODAY);
Could you please clarify why in Washi the NPV should not be further discounted to TODAY?
Thank you,
MartinPart (c) (ii) of the question for Washi specifically asks for the NPV based on the end of year 1 as being the start of the project (time 0).
Thank you – I misinterpreted the requirement and overcomplicated the task thinking another adjustment was needed. Thank you for the answer.
- The topic ‘Washi (Sep 2018) vs Hathaway (Mar 2020) – project starting in 1 yrs time’ is closed to new replies.