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Hie sir .
On question 122 BPP kit
They say
Cash flows
T0 investment 100 000
T1-5 Net cash inflow 40 000
What is the adjusted payback period for this project.
Here
Their cashflows
Are written as
Time 0 40 000
Time 1 40 000
Time 2 40 000
Time 3 40 000
They have separated the 40 000 for each individual year I thought its a net cash flow it will be 40 000 for the whole 3 years
However on question 123
They have the following cash flows
T0 outflow 110 000
T1-4 inflow 40 000
Here they are using an aggregate
….
My question is why the other question they used individual amount each year and the other they used aggregate
When we write T1-4 40,000 we mean that it is 40,000 in each year from time 1 to time 4. Not that it is 40,000 in total.
Thank you sir
You are welcome 🙂
