accountants i need help!!Watch
Check Fred’s workings (highlighted in red below) and explain the results of an investment appraisal of the initial equipment, fixtures and renovation and conversion costs.Fred has used a cost of capital of 15% and assumed that in each of years 1-5 the business sells the projected 40,000 units at the projected prices of £1.50 per unit.
ezcuse the upside down writing
but my girl is here
I presume you are given the timings and that the discount factors are rates which you use to obtain the present value of each cashflow? Then you sum them to find the net present value.
and its the calculation im confused with