Day: September 5, 2022

The table shows the calculation of the net present value of a potential project.

Which cash inflow during Year 1 will give a net present value of zero for the project?

Select ONE answer:

1. £5,516
2. £5,560
3. £5,900
4. £6,440

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – (£5,516 * 0.91) + £4,980 = £10,000
2. Not correct
3. Not correct
4. Not correct

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