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Chmura co (Dec ’13

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Chmura co (Dec ’13

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by AvatarJohn Moffat.
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  • March 17, 2024 at 1:00 pm #703105
    AvatarQwertycxz
    Participant
    • Topics: 5
    • Replies: 3
    • ☆

    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?

    March 17, 2024 at 5:48 pm #703111
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    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.

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