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Project Duration

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Project Duration

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • January 16, 2024 at 8:26 am #698327
    guyver101
    Participant
    • Topics: 33
    • Replies: 28
    • ☆☆

    Hi, if a project has cash outflows in year 0, and year 1. Moving positive in year 2.

    do we still calculate duration the same way ie PV of each cash flow * year

    Then the sum of these divided by the sum of PVs? Or do we have to do something different due to the 1st year cash outflow? perhaps duration for when cash flows in + 1 year for outflow?

    Thanks

    January 16, 2024 at 8:38 am #698328
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    No – it is the same approach 🙂

    January 16, 2024 at 11:02 am #698376
    guyver101
    Participant
    • Topics: 33
    • Replies: 28
    • ☆☆

    Thanks John

    January 16, 2024 at 3:48 pm #698442
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Project Duration’ is closed to new replies.

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