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# NPV - Mock Exam

sophie_612
LondonRegistered Posts:

**107**
Hi,

Would someone be able to explain to me how the worked out the npv and the payback on the attached?

Thanks

Sophie

Would someone be able to explain to me how the worked out the npv and the payback on the attached?

Thanks

Sophie

0

## Comments

264-260000 this is your initial cost and is negative figure, the rest are positive figures and represent income

-260000+44828.6+44632+40868.8+37587.60+36174.6=-55908.4

The npv is negative so the projrct us not viable and should nit go ahead

AAT Level 3. 2018 Distinction

AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%

Xero Certified Advisor

26450200+56000+57400+59000=222700

We require just a fraction (37300)of the year 5 income, therefore

4 y +(37300/63800*12 months) =4 y and 7 months

AAT Level 3. 2018 Distinction

AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%

Xero Certified Advisor

107