Another question from the mock paper which i can’t seem to grasp. I re-watched the lecture videos and am more confused than ever with the following questions:
Able Ltd is considering a new project, details below:
Initial cost: $300,000
Expected life: 5 years
Estimate scrap value: $20,000
Addition revenue from project: $120,000 per year
Incremental costs from project: $30,000 per year
Cost of Capital: 10%
a) calculate net present value of project
Please sir can you explain step by step i just dont get it?
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Fma
2y ago#1You will find the workings in one of my previous replies to a post:
https://opentuition.com/topic/npv-7/
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