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NPV question- EXAMPLE 5 Ventspills P/C

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › NPV question- EXAMPLE 5 Ventspills P/C

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by IAW3005.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 27, 2024 at 1:17 pm #710421
    humayun18
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    Q.6
    Years
    “000” 0 1 2 3 4
    Revenue 2,000 2,140 2,290
    materials (864) (933) (1,008)
    labour (735) (772) (810)
    capital allow. (700) (525) (394)
    LOSS on disposal (181)
    taxable pro./(loss) (299) (90) (103)
    tax savings/@ 25% 75 23 26
    add.capital alllow. 700 525 394
    add loss on disposal 181
    machine (2,800) 1,000
    working capital (200) 200
    net cashflows (3,000) 401 510 1,695 26
    discount factor 1 0.909 0.826 0.751 0.683
    present values (3,000) 365 421 1,273 18

    NPV (924)

    Please have a look and suggest whether the examiner would deduct my marks for change in format or good to go

    August 27, 2024 at 3:30 pm #710426
    IAW3005
    Moderator
    • Topics: 4
    • Replies: 1597
    • ☆☆☆☆☆

    The video goes through this example in detail
    https://opentuition.com/acca/fm/relevant-cash-flows-for-dcf-inflation-example-5-acca-financial-management-fm/

    If you get ( 924 ) then you are right

  • Author
    Posts
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