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Furlion 2016

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Furlion 2016

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by AvatarJohn Moffat.
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  • November 15, 2018 at 8:31 pm #484944
    Avatarsid18
    Member
    • Topics: 6
    • Replies: 2
    • ☆

    How pa value can be find???? Why PE is multiply with 3 year 12%value???

    November 16, 2018 at 6:26 pm #485018
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    Given that the NPV of the expansion is zero, then the PV of the future returns must equal the PV of the cost of the expansion. The cost of the expansion is in 3 years time, so the PV is 15M discounted for 3 years.

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