Calculation of ARRForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Calculation of ARRThis topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total) AuthorPosts April 16, 2021 at 12:19 pm #617864 AnonymousInactiveTopics: 40Replies: 42☆☆Please tell why scrap value is added to average capital investment? April 16, 2021 at 3:13 pm #617877 John MoffatKeymasterTopics: 56Replies: 53820☆☆☆☆☆Because we are trying to find the average SOFP value of the asset, and the average is the (initial cost + the scrap value) / 2I do explain this, and the reason for it, in my free lectures on investment appraisal.The lectures are a complete free course for Paper FM and cover everything needed to pass the exam well.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In