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The question was-
Question 1) Project is of 6 years. Investment permission will be given after one year. You have to calculate NPV. – – – – – 6 marks
Question 2) You have to calculate ENPV. There r 70% chances that investment will be approved. – – – – – 2 marks
Question 3) Investment permission will be given after 2nd year. Cash flows will be reduced by 40%. Project is of 6 years.Answer- I calculated as=
1) calculated NPV but forgot to take one year time.
2) Calculated ENPV, by taking NPV as first question. Although method applied was correct.
3) this part done by taking NPV and extended to 8 years. And by reducing cash flows by 40% as of 1st part.
How it will affect marks?
Need ur suggestions on this so that in future mistakes doesn’t arise.
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