akhilven saysNovember 28, 2017 at 12:22 pmHello sir. In example 8. Why dont we take the scrap value as an inflow ? And in all other examples. We added the scrap value to the inflow.wouldn’t the total profit be 40,000 If in example 8. We added the scrap value to the inflow?Log in to Reply
akhilven saysNovember 28, 2017 at 12:26 pmSorry for the silly question sir, I have understood 馃檪Log in to Reply
Roopal saysSeptember 27, 2017 at 10:58 amWhat if the target rate of return was 17%? Should we still accept the project because when we round off the figure it becomes 17%?Log in to Reply
John Moffat saysSeptember 27, 2017 at 11:44 amWhy do you want to round it? It is either more than 17% or less than 17% 馃檪Log in to Reply
Hello sir. In example 8. Why dont we take the scrap value as an inflow ? And in all other examples. We added the scrap value to the inflow.wouldn’t the total profit be 40,000 If in example 8. We added the scrap value to the inflow?
Sorry for the silly question sir, I have understood 馃檪
I am glad you now understand 馃檪
What if the target rate of return was 17%? Should we still accept the project because when we round off the figure it becomes 17%?
Why do you want to round it? It is either more than 17% or less than 17% 馃檪