CT1 ch10 q10.9

Discussion in 'CT1' started by dan r, Sep 3, 2017.

  1. dan r

    dan r Member

    *when calculating the DPP, why do we ignore the resale value of the assets (+500) in the calculation?

    thank you!
     
  2. John Lee

    John Lee ActEd Tutor Staff Member

    The DPP is the time until NPV=0 (or accumulated value = 0). If you're including the final payment then you're saying that you don't break even until the end of the project.
     

Share This Page