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Contribution in the calculation of NPV

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Contribution in the calculation of NPV

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.
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  • March 3, 2020 at 4:30 pm #563926
    Anonymous
    Inactive
    • Topics: 3
    • Replies: 0
    • ☆

    I was given a question in exam where i had to calculate the NPV and i had only practised question where i had to inflate the Selling price, Variable cost, Fixed cost etc just like the pro forma i learned. However, in the question i was given the contribution for several years and i was also given variable cost and the rates to inflate the costs. I do not really remember the exact question but in case i get a question whereby i am not given sales revenue and there is contribution, how should i deal with the question please?
    Regards,
    Thank you.

    March 4, 2020 at 6:30 am #564037
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54764
    • ☆☆☆☆☆

    If you were given the contribution and the variable costs, then the sales revenue is the contribution plus the variable costs.

    Other than that I cannot really help you without actually seeing the question.

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