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AFM – Black Scholes question

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › AFM – Black Scholes question

  • This topic has 3 replies, 2 voices, and was last updated 5 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • September 25, 2020 at 8:14 pm #586725
    Avatarjareerabedin
    Member
    • Topics: 91
    • Replies: 72
    • ☆☆

    AFM – Black Scholes question

    it is a 3 year project, NPV of expansion is $0

    $15m would be required to start the project

    this means in year 0 = (15m)

    year 1+2+3 = future values should equal 15m

    thereby, the NPV of the project becomes 0

    is my understanding correct?
    Thank you so much

    September 26, 2020 at 7:43 am #586738
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54837
    • ☆☆☆☆☆

    Yes, your understanding is correct 🙂

    September 26, 2020 at 11:18 am #586758
    Avatarjareerabedin
    Member
    • Topics: 91
    • Replies: 72
    • ☆☆

    Thank you so much sir
    hats off to you

    September 26, 2020 at 3:17 pm #586782
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54837
    • ☆☆☆☆☆

    You are welcome 🙂

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