cima-p2Discounted cash flow - Replacement - CIMA P2CIMA P2 lectures Download P2 notes YouTube videoPlay video3 CommentsNnour·4y agoin 3 years replacement: the second year's NPV is 5600X0.756=4234JJohn MoffatTutor·4y agoNo it is not. I do not know where you are getting 5,600 from. There is an outflow at time 2 of 9,600 and so the PV is 9,600 x 0.756 = $7,258 as per the answer.Aabiola15·7y ago57384/0.870 should be 65,959 not 66,476Leave a commentPost comment
the second year's NPV is 5600X0.756=4234
I do not know where you are getting 5,600 from.
There is an outflow at time 2 of 9,600 and so the PV is 9,600 x 0.756 = $7,258 as per the answer.