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Chmura co (Dec ’13

This topic has 1 reply, 2 voices, and was last updated 9 months ago by John Moffat.

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March 17, 2024 at 1:00 pm #703105
Qwertycxz
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Why did v take pv of initial investment of land and building in end of the project life?
If land and building is given as initial investment,should v always take take the pv of it in project year end life?
March 17, 2024 at 5:48 pm #703111
John Moffat
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We always take all cash flows from the project.
The question says that the value of the land and buildings at the end of the life of the project is 80% of the initial value, and this is the amount that the examiner has included in the calculation of the NPV.
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