Sir,
In the kaplan kit the Pa has been discounted by 2 yrs and thus it became from 28m to 23.13m. But in your lecture it has not been discounted at all and scenario is the same.
Why has it been discounted? And not in your lecture? And in the kit value of project is not including NPV of 4.
Thank you sir
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Digunder 07 dec
7y ago7y ago#12) I think i got it for Value of project.
Option value to delay = project value.
Option to adbandon or expand value = value of option and this should be added to NPV of project.
Is this correct?
7y ago#2I have no idea why Kaplan have discounted the 28M for 2 years. The examiner has not done so in his answer and there is no logic to doing so.
Your second point is correct.
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