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Dear Sir ,
Generally we calculate NOV for future projects. Here in problem 1 of June 2012 – we have been asked to calculate NPV for past performance i.e for year 2010, 2011, and 2012. How the answer is arrived at beyond comprehension.
Will you kindly throw some light on it.Deepak
I’m not sure I get it myself! You were not asked to do a NPV calculation, but if I had been doing it I would have done it as it would have been done at the start of 2010 and simply commented on the 2010 NPV that old project seemed to be generating. It would still be negative.
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