cost and revenue exam level 3 NPV/NPC

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miola31
miola31 Registered Posts: 3
in AAT Level 3 (Level 6 in Scotland)
could someone clarify for me if and when I am using minus signs for Net present value and Net present value cost? Task 10. If I have NPC do I use minus signs in all table (operating cost, net cash flows and discounted cash flows lines)? If it is NPV using minus just when operating cost and if NPV is negative? Thank you

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  • ariadne
    ariadne Registered Posts: 218
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    I'm using them for the initial, year 0, spend in the first column. I don't use them for the operating costs row, I haven't seen any examples or answers who do this. I haven't come across any negative net cash flows either, but I would expect to use a minus if the net cash flow was negative. The only other negative number I have come across is the final NPV figure when it makes a loss. There are six practice tests on MyAAT which are all very similar for this question and similar to my text book too.

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