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Fernhurst (Sept/Dec 2016)

This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.

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August 1, 2023 at 9:20 am #689229
nurazman
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Qb) For the % change in selling price, how do we know the percentage is “reduction” ? The NPV is from $7801 to $43,441. Why the answer not “increased in % selling price” ?
August 2, 2023 at 6:19 am #689261
John Moffat
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Given that the NPV is positive at the moment, then for it to end up being zero the NPV has to be lower and so the selling price has to be lower.
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