Skip to content

Ask the Tutor ACCA FM

NPV - Inflating Fixed Costs

Uunied_269y ago
Hi Tutor, In an NPV question, with Inflation... Please advise in what circumstances do I NOT inflate Fixed Costs...? Many thanks, Michael
John MoffatJohn MoffatTutor9y ago#1
Fixed costs are only relevant if they are incremental fixed costs. Whether or not you inflate them depends on whether the question says that they inflate or not!
Sign into reply to this topic.