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Does the examiner always tell whether a project is divisible or not?
If a question gives us the initial outlay plus the inflow per yr and the cost of capital? how do your find the NPV?
investment *1
then inflow * 1 yr discount factor ryt?The question is TYU 10 in kaplan text pg 153?
can u help me out
they have done it like this inflow per yr/0.1 and then ini investment minused
cost of capital is 10%If there is capital rationing the the question will tell you if the projects are divisible or not (if there is not capital rationing then it is irrelevant).
I don’t have the Kaplan Study text so I can’t help you with the second question, however our lectures are a complete course and cover everything needed to F9 – if you are watching our lectures throughout you don’t need a Study Text, just an Exam Kit in order to practice exam standard questions.
yeah, I have watched it but u can answer this-
If a question gives us the initial outlay plus the inflow per yr and the cost of capital? how do your find the NPV?
You discount each of the inflows using the tables provided, and subtract the initial outflow.
If you have watched the lectures then I don’t really understand why you are having to ask this. Maybe I am misunderstanding your question but this is really Paper F2.
I got it, bit confused with wen they say annual cash flow in perpetuity thnks for the reply anyway 🙂
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