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NPV question- EXAMPLE 5 Ventspills P/C

MHMuhammad Humayun1y ago
Q.6 Years "000" 0 1 2 3 4 Revenue 2,000 2,140 2,290 materials (864) (933) (1,008) labour (735) (772) (810) capital allow. (700) (525) (394) LOSS on disposal (181) taxable pro./(loss) (299) (90) (103) tax savings/@ 25% 75 23 26 add.capital alllow. 700 525 394 add loss on disposal 181 machine (2,800) 1,000 working capital (200) 200 net cashflows (3,000) 401 510 1,695 26 discount factor 1 0.909 0.826 0.751 0.683 present values (3,000) 365 421 1,273 18 NPV (924) Please have a look and suggest whether the examiner would deduct my marks for change in format or good to go
IAW3005IAW3005Tutor1y ago#1
The video goes through this example in detail https://opentuition.com/acca/fm/relevant-cash-flows-for-dcf-inflation-example-5-acca-financial-management-fm/ If you get ( 924 ) then you are right
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