Initial investment and scrap value

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September 6, 2018 at 9:00 pm #471960
maxpopper
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Sir

Do we ever inflate scrap value and initial investment in investment appraisal questions? Or in an exam question can it come that inflate initial investment and scrap value?
September 7, 2018 at 5:26 pm #472133
John Moffat
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It depends on the wording of the exam question.

Of course there can be inflation of the scrap value, but pretty unlikely with regard to the initial investment.

Please watch my free lectures on investment appraisal with inflation.
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