Melplash bpp investment appraisal

This topic has 1 reply, 2 voices, and was last updated 2 years ago by IAW3005.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
May 2, 2024 at 7:20 am #704807
sabitha
Participant
- Topics: 19
- Replies: 8
Sir in this question while calculating roce we have deducted 30m scrap value from the forth year pv of the cash flow what is the reason behind it
Can you explain sir
May 2, 2024 at 4:43 pm #704842
IAW3005
Keymaster
- Topics: 4
- Replies: 1625
You must calculate an average of the capital employed
So the investment is 220 and the rv (scrap) is 30
They are both forms of capital to the project – both as an asset
That is 250/2
Beccause there are two cashflows
That makes 125
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.