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Hi,
Although i’ve done some questions still couldn’t grab the concept behind Fixed costs inclusion or exclusion from NPV calculation. When to include? Although it is said only relevant costs should be included, still i find it quite difficult to sort it out. Kindly, need your support and comments to get the concept. Thanks!Hi, I think if these fixed costs are incremental to the project they should include during NPV calculation, but if this is fixed costs not relate to the project but overall fixed costs of the company they excluded from NPV calculation.
You can find this type of question on 1 question of June 2013 sesssion.
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