Sir in your lectures you said that only if (current terms) is given then we have to inflate from first year. But in the 162 Q they have not mentioned if sales and V/C have inflated in current terms. But still in the answer they have inflated from 1st year onwards instead of 2nd year. Why?
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BPP kit Q 162 (NPV)
I mean current price terms.
Sir could you please help me with this question
7y ago#3The note in the question specifically says that the the selling prices have not been inflated, and therefore they must be in current price terms. Especially given that the prices change in later years (before inflation) it would be silly for those prices to have been quoted in year 1 prices!
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