Skip to content

Ask the Tutor ACCA AFM

Chmura co (Dec '13

QQwerty2y ago
Why did v take pv of initial investment of land and building in end of the project life? If land and building is given as initial investment,should v always take take the pv of it in project year end life?
John MoffatJohn MoffatTutor2y ago#1
We always take all cash flows from the project. The question says that the value of the land and buildings at the end of the life of the project is 80% of the initial value, and this is the amount that the examiner has included in the calculation of the NPV.
Sign into reply to this topic.