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Hi Sir,
Do we Also need to take a NPV of Scrap or Residual Value of Machine at the end along with Cashflows?
Any cash received from the sale of the machine should be included in your table of cash flows. You then discount the net cash flow each year.
(I suggest you watch my lecture on Investment Appraisal – Discounted cash flow
https://opentuition.com/acca/f9/acca-f9-investment-appraisal-discounted-cash-flow-npv/ )Thank You Sir I already Watched that Lecture, It was my Mistake that I skipped that Part and forgot that anyway Thanks sir 🙂
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