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Washi Co

ZzorrizSupporter6y ago
Hello Sir, for PYQ Sept 2018 Q1 Washi Co, Why the initial investment in year 0 that start in 1 year time do not discounted at present value which is time 0 (now)? (DCF@12%) (0.893) Thank you.
John MoffatJohn MoffatTutor6y ago#1
The examiners wording is a bit confusing. If you did have the initial investment at time 1 (and therefore all the other flows 1 year later than in the answer), then you would still get the marks.
ZzorrizSupporter6y ago#2
What if I follow the examiner format which write the project year rather than time 1,but still discount the initial investment back to present value, will consider no mark? Thank you.
John MoffatJohn MoffatTutor6y ago#3
That would still get you full marks :-)
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