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