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Sir,
If you could help with me Question No. 11 page 734 of the Kaplan study text.
My problem is regarding the first part of the question i.e calculate the NPV.
Sir why has the solution calculated the incremental revenues/costs attributing to the machine.When calculating the NPV we always take the costs and expenses relating to the machine,isnt it and not incremental. If i calculate the NPV without taking incremental costs/income i get an NPV of +266,000. Will i lose marks if i calculate without taking incremental costs? Why has he calculated with relevant costing? And do we use it for NPV?
Thanking you in advance sir for your help and guidance always.I am sorry, but I do not have the Kaplan Study Text and so I cannot help you.
Have you watched my free lectures? The lectures are a complete course for Paper F9 and cover everything needed to be able to pass the exam well. If you watch the lectures then you do not really need a Study Text – just an Exam Kit (because practice on exam standard questions is so vital to passing the exam).
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