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Sir John,
How do know when I have use the Effective rate of interest to find the future value of a project
With project appraisal it is very rare to be asked to calculate the future value. Almost always we calculate the NPV.
The rate of interest to use is the annual cost to the company which is given in the question.
Have you watched my free lectures on this? The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
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