Donate SIGN UP

NPV question help

Avatar Image
puzzleking123 | 17:05 Mon 10th Jan 2011 | Business
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
Gravatar

Answers

1 to 5 of 5rss feed

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.
Affected by what?
Is the £40,000 figure an NPV figure?
Have you had chance to consider these responses?
Ta
So many of your question threads just seem to peter out.
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

1 to 5 of 5rss feed

Do you know the answer?

NPV question help

Answer Question >>

Related Questions