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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Calculation of NPV
Dear Sir/Madam ,
Hope you are well .
Could you kindly assist me to calculate the NPV following below question ?
Able limited is considering a new project for which below information is available:
Initial cost $200,000
Expected life 5 years
Estimated scrap value $20,000
Addition revenue from the project $120,000 per year
Incremental cost of the project $ 30,000 per year
Cost of capital 10%
Kindly help me to calculate NPV ,IRR and ARR based on the above information as I couldn’t resolve it giving try many times . Looking forward to getting your kind support at the earliest
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