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In case of NPV , what if question provides following information instead of giving the “Initial investment amount” of the project :-
To start this project co.s existing Non Current Assets were used at T0. The WDV of these assets was $4m and Market Value was $5m.
In this question, to calculate NPV, which amount should I subtract ($4m or $5m) from “PV of Cash Inflows”??
The market value.