- This topic has 3 replies, 2 voices, and was last updated 3 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘Probability analysis’ is closed to new replies.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Probability analysis
Dear sir, please help me to explain the question 161 of revision kit.How to calculate NPV (1013), (216),1378 in the 1 st senario?Thank you
If the cash flows new $1M in the first year and $2M in the second year, then discount each at 12% gives PV’s of 893 and 1,594.
Since the investment cost $3,500, the NPV is 893 + 1594 – 3500 = (1,013)
It is the same logic for all of the others 🙂
It is simple to understand,why i don’t find out ?Thank you
You are welcome 🙂