Hathaway March 2020Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Hathaway March 2020This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts December 26, 2022 at 3:04 pm #675110 aliyParticipantTopics: 4Replies: 2☆Hello sir,For the part a ii and iii) of this question, when calculating NPV, why do we need to deduct the $10.72 from the expected Npv calculation?I thought that we had to add the 10.72 (pv of year 1) to the NPV of years 2 to 5..Can you please explain sir? December 28, 2022 at 10:03 am #675146 John MoffatKeymasterTopics: 57Replies: 54499☆☆☆☆☆10.72 is the PV of the initial investment and is therefore negative and is subtracted from the PV of the later inflows.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In