20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for December 2024 exams.
Get your discount code >>

NPV Decision

This topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.

Viewing 4 posts - 1 through 4 (of 4 total)

Author
Posts
April 12, 2017 at 9:58 pm #381101
fazeel93
Member
- Topics: 71
- Replies: 49
sir if there is a situation where we have 2 options that we can either sell a building for profit or we could refurbish the area for a positive NPV project , which one would we choose?
April 13, 2017 at 6:21 am #381113
John Moffat
Keymaster
- Topics: 57
- Replies: 54478
Whichever gives the highest NPV!
April 13, 2017 at 9:01 pm #381259
fazeel93
Member
- Topics: 71
- Replies: 49
Like sir in this question im getting a positive npv of 951,000 dollars however he can have the alternative of getting cash 1.5million dollars straight away right now so obviously cash is better right?
April 14, 2017 at 6:54 am #381285
John Moffat
Keymaster
- Topics: 57
- Replies: 54478
Right. The NPV of 1.5M dollars now is 1.5M dollars!!
(Are you watching my free lectures? They are a complete free course for Paper F9 and cover everything needed to be able to pass the exam well.)
Author
Posts

Viewing 4 posts - 1 through 4 (of 4 total)

The topic ‘NPV Decision’ is closed to new replies.