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NPV with inventory balance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › NPV with inventory balance

  • This topic has 3 replies, 2 voices, and was last updated 8 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
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  • December 6, 2017 at 10:35 am #420966
    richardscully
    Participant
    • Topics: 197
    • Replies: 145
    • ☆☆☆

    dear Sir

    What value do we use of inventory in the NPV?

    December 6, 2017 at 11:01 am #420983
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54806
    • ☆☆☆☆☆

    You will have to refer to an actual question, because it depends on what the question says.

    However inventory is normally not relevant for NPV calculations – it is usually just the working capital that is relevant (and this, by definition, includes the inventory).

    December 6, 2017 at 2:41 pm #421050
    richardscully
    Participant
    • Topics: 197
    • Replies: 145
    • ☆☆☆

    Great, thank you….i was thinking back to F5 when you were doing some similar calculation which had inventory a a value……must have been something else

    December 6, 2017 at 3:06 pm #421055
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54806
    • ☆☆☆☆☆

    You are welcome 🙂

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    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘NPV with inventory balance’ is closed to new replies.

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