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