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Revision Exam Question

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Revision Exam Question

  • This topic has 0 replies, 1 voice, and was last updated 3 years ago by Zah1d.
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  • December 3, 2022 at 1:29 pm #673228
    Zah1d
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    • Topics: 1
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    • ☆

    I was taking a revision exam and could not come to the answer given for the question below. Could you please help me?

    Initial cost – $300,000
    Expected life – 5years
    Estimated scrap value – $20,000
    Addition revenue from the project – $120,000 per year
    Incremental costs of the project – $30,000 per year
    Cost of capital – 10%

    Calculate the NPV

    The answer is 53610 and I got 53581.

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