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Scrap Value

Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › Scrap Value

  • This topic has 1 reply, 2 voices, and was last updated 13 years ago by estherpang87.
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  • November 26, 2011 at 11:04 pm #50554
    rballiram
    Member
    • Topics: 1
    • Replies: 9
    • ☆

    When a question is given with scarp vaue at the end of 5 years for example will be 1000.

    The question also mentions an inflation rate for example of 5% each year. Why isnt the vaue of scarp also inflated, at the end of the 5 years?

    November 27, 2011 at 5:16 am #89936
    estherpang87
    Member
    • Topics: 12
    • Replies: 12
    • ☆

    Hi,

    did the question say value of scrap is at current price? if no, then u don’t have to inflate it. usually scrap value is not subject to inflation.

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