Home For AAT student members AQ 2013 AAT Level 4 (Level 8 in Scotland)

discounted cash flow rate to Scrap value

do you apply the discounted cash flow rates to the scrap value if this is given to you as a figure ie, the scrap value is expected to be £5k in year 5. do you then apply the NPV in year 5 to this scrap value?

Comments

  • SandyHoodSandyHood Font Of All Knowledge Registered, Moderator Posts: 2,034
    A very clear question.
    Yes discount the scrap value at the appropriate discount rate for year it will be scrapped.

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    Sandy
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    MelissaH
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