Question 45 on the 2011 PM mock exam… I did it the NPV method (or tried) and my calc gave me an NPV of 153K (more than the accelerated method). Is it a setting on my calc? I get 146445 (the amount given for the accelerated method) when I plug in the npvs in the second exhibit though so its really annoying me right now.
no one solved that question using the traditional NPV way. dun be frustrated. just plug in the change in depretiation times the tax rate. that way you also find the difference in NPV.
so how is it even possible? they claim it is…
Calc the difference in after tax cash flows from the depreciation changes.