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Inv appraisal NPV calculation- Decimal places to consider

SSonali4y ago
Hello John! For eg when we calculate inflated sales price or variable cost how many decimal points do we take into consideration in the answers I have seen they round it up to the nearest whole number or it varies from 1-3 points, is there a specific decimal point we can take as a rule of thumb for convenience ? Because when I round it to the whole numbers they will consider it to 3 decimal points in the solution and vice versa leading to a big difference in answer because all the values change, I don't think the rounding up should matter but would love to hear it from you! Thanks
John MoffatJohn MoffatTutor4y ago#1
Section A and B questions will make it clear what rounding is required. In Section C questions it really doesn't matter. Usually we round to the nearest thousand, but that is not a rule. The marker is not marking your final answer, but it marking the workings :-)
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