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Chap16-Q1

This topic has 2 replies, 2 voices, and was last updated 6 years ago by tgodwine.

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February 3, 2018 at 9:31 am #434869
tgodwine
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Good day Sir, please advise, on NPV calculation Q1 no mention is made of fixed cost whereas 20% of it was to be absorbed into the new product…?
February 3, 2018 at 12:57 pm #434892
Ken Garrett
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The fixed costs are not incremental costs, so are not relevant to the NPV calculation.
February 5, 2018 at 7:28 pm #435338
tgodwine
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Thank you Sir!
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