Dec 08 question Rupab co. (KP kit q.no 51)

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December 2, 2012 at 6:53 am #55978
rimx
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Hi,

In this question how the NPV is calculated for the investment appraisal to +500 as the PV is making up an NPV of -1 ?
December 2, 2012 at 6:05 pm #109301
John Moffat
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Check you additions again – the total of the PV’s comes to +0.5

Don’t forget that all the cash flows are in $’000’s and so the actual result is +0.5 x 1,000 = +500.
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