Revision Mock Exam

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September 13, 2021 at 2:33 pm #635671

sooha
Participant

could you explain Section B – question 1 / to me the Revision Mock Exam in this site
what is the net present value ?
initiate cost 300 000
expected life 5 years
estimate scarp value 20 000
addition revenue from the project 120 000 per year
incremental cost 30 000 per year
cost of capital 10 %

September 13, 2021 at 2:52 pm #635673

sooha
Participant

i think i figure it out

120000-30000) =90000

300000 – (90000*3.170)-(110000*0.621) =53610

September 13, 2021 at 4:45 pm #635683

John Moffat
Keymaster

That is correct 🙂
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