We don't take allocated overheads in cash flow while calculating NPV?
Ask the Tutor ACCA FM
Allocated overheads
Fixed overheads are only relevant if the total overheads of the company increase as a result of doing a new project.
Allocating/sharing overheads differently between projects does not mean the total overheads have changed.
I do explain this in my free lectures on investment appraisal.
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