[Dee]

Dear John,

I have passed my exam 55% today! Thank you so much for your support! 🙂

[Dee]

Thank you so much John! your always helpful!

[Dee]

It was in the real exam question which I struggled answering it and got 48% 🙁 They gave me sales figures up to three years. They confused me by saying ‘if the asset is sold, it will be in year 2 and Disposal of asset would be 30,000 and giving profit of 1,000. The word ‘if’ confused me a lot. the question right after it was; What are the incremental cashflows in Year 1 and year 3.

Hope this makes sense 🙂

[Dee]

Thank you so much for the response John! One more clarification I need for this question, If the asset is sold, it will be in year 2 and Disposal of asset would be 30,000 and giving profit of 1,000. So in yr 2 I must subtract all the relevant costs from the revenue of 150,000 and then add the disposal amount of 30,000 then discount it at 12%? Is that right?

Thank you so much for your help.

[Dee]

Thank you so much! This helped me a lot!

[Author]

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