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Investment Apprasial

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Investment Apprasial

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
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  • Author
    Posts
  • June 7, 2019 at 8:51 am #519520
    georgiapower1
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    Hi there,

    Im trying to do the mock and when it comes to section B i just cant get the NPV question right.

    Initial cost : 300,000
    Scrap value : 20,000
    Expected life 5 yrs
    Additional Revenue : 120,000 p.a
    Incremental costs : 30,000 p.a
    Cost of capital : 10%

    I know it is inflows minus the outflows then finding the rates within tables.
    Still cant get it to match ans.

    Could you help me with this?
    Thanks a million

    June 7, 2019 at 5:33 pm #519672
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    See my reply to a previous post on this, here:

    https://opentuition.com/topic/practice-mock/

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