Financial Performance 2013

Hi all! Please help, I have an exam this Saturday! My question relates to LIFECYLE COST of purchasing and leasing a machine. In the AAT assessment practices, it ask you to input net cash outflows as positive figures and net cash inflows as negatives figures. However in the answers to the assessments, does not show any minus signs when I think should have where appropriate. Please share your knowledge and advice.
Thank you!

Comments

  • KarenMustardTutor
    KarenMustardTutor Registered, Tutor Posts: 28
    Hi
    In sample assessment 2 for example.
    All the figures are costs - either costs of purchasing or leasing. These are all cash outflows so are shown as a positive per exam instructions.
    There are no cash inflows.
    If you look at the answer template you can see your final figure is the Net Present Cost. This is a cash outflow and should be positive.

    Good luck on Saturday
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