Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › NPV question- EXAMPLE 5 Ventspills P/C
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- August 27, 2024 at 1:17 pm #710421
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 18NPV (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 #710426The 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
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