Residual Income

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August 29, 2016 at 11:09 pm #336129
Puja
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Referring to: BPP exam kit- Q276, page 74

I didn’t get the correct answer when working out the residual income with investment as it had deducted depreciation.

However, there was no mention of depreciation in the question at all.. it was deducted at $850. I’m not sure where they got this figure from and do we always deduct depreciation when working out the residual value?

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