Quizzes & Puzzles7 mins ago
NPV question help
5 Answers
A trader has two options. to purchase a shop with a net present value over a 5 year period of 1,225.20 or purchase a website with a net present value over a 5 year period of 26,589.50. After 5 years the shop and fittings can be sold for 40,000 but the website can only be closed down with no residual value. How would the figures be affected
Answers
Best Answer
No best answer has yet been selected by puzzleking123. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.Was this right? http://www.theanswerb...V/Question976592.html
I have done similar question at 2nd year of university in Management Accounting Application given two products or two manufacturing services and you needed to calculate the best option. I believe you need to take into account the ARR, IRR, the NPV and PB period.
Please let me know if you still need the answer to this question . I am sure i can work out the answer. regards
Please let me know if you still need the answer to this question . I am sure i can work out the answer. regards