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Recent FM exam question relating to NPV,
inflated all sales, variable cost by inflation, COC given,
* Whole project financed by bank loan 6%
*WACC of the project 13%Was it right to use the 13% to discount or should it have been the 6%?
Many thanks
Without seeing the whole of the question, it would almost certainly have been 13%.
Tell me which exam and I will check for myself.
Many thanks John.
This was from the FM exam i sat this past Friday (5th March 2021)
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