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Reply: Question - Need to know how it is calculated

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Topic History of : Question - Need to know how it is calculated

Max. showing the last 6 posts - (Last post first)
1 year 3 months ago #30067

Victor Bade-Victory

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The question stopped at the 3rd year that's why
3 years 3 months ago #25333

Amit Kumar

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As a thumb rule, projects with higher cash inflows during the initial years will be more attractive....in case someone wants to save time in calculations.
Not sure if this holds good for all scenarios.
4 years 1 week ago #20348

Harry Elston

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Shyamal: The questions asks for only 3 years. See the final sentence of the question.
4 years 1 week ago #20345

Shyamal Saha

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2nd project is more attractive if 3rd year profit continue till 4th year. Why are we considering 3 years life span ?
6 years 6 months ago #11999

Anonymous

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Thank you for the answer. Reviewing my answers to Oliver Lehmann's test now and could not figure this one out. His site and test has been pointed out as a great source: http:/www.oliverlehmann.com/pmp-self-test/75-free-questions.htm.

Great site here. Thank you.
6 years 9 months ago #11022

Bhushan

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Why don't you subtract cost for 1st year $250,000. 250,000/1.05= 238,095

Therefor NPV = 326,791-238,095 = 88,696

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