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Question regarding Section A March/June 2019 exam paper

This topic has 2 replies, 2 voices, and was last updated 5 years ago by John Moffat.

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September 6, 2020 at 12:26 pm #583676
edite
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Requirement (B) (ii)
It is asked to explain how Jugu Project value is reached in amount of 46.100.000USD
Looking at answer it is showed that investment in project of 60.000.000 is summed together with NPV of the project 10.000.000USD reaching 70.000.000USD. Why initial investment which is with minus is summed together with NPV? And then 70.000.000 x 1.11 in the power of -4.
September 6, 2020 at 1:35 pm #583677
edite
Participant
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Sorry, no need to answer the question, I found answer in your lectures:)
September 6, 2020 at 4:51 pm #583698
John Moffat
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I am please that you found the answer 🙂
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