- This topic has 5 replies, 3 voices, and was last updated 10 years ago by
.
Viewing 6 posts - 1 through 6 (of 6 total)
- Posts
do we have to deduct interest payment on a loan taken to finance the investment when calculating NPV
No – it is taken account of when discounting (because the cost of the loan is included in the calculation of the cost of capital)
Just wanted to ask: unfortunately i deducted the interest. And the final answer will be not correct. Exam stress. How then my answer will be marked ? “O or some marks will be awarded for working ( capital allowance, inflated sales, etc)?
You get marks for each part of the workings – the final answer gets hardly any marks.
Viewing 6 posts - 1 through 6 (of 6 total)
- You must be logged in to reply to this topic.