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sir in the example 2 of the free lectures you had stated that
“the minute we sell this machine in two years time, we will buying a new machine .
and we assume the same cashflows keep getting repeated …
meaning 72972 will get incurred every two years …2,4,and so on…”i did not understand how $72972 will get repeated …
what does that mean sirthank you in advance
72,972 is the PV of just one 2 year cycle.
The 2 year cycle keeps getting repeated every two years and therefore the PV each time it is repeated is 72,972.
so that means the scrap value also should be unchanged uncluding the cashflows right sir ?
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