0 KhushboogoyalPro Asked: November 14, 20222022-11-14T14:38:31+05:30 2022-11-14T14:38:31+05:30In: Corp. Finance (CFA L2) Mock question 0 https://study.cfainstitute.org/app/cfa-program-level-ii-for-november-2022#exams/96545681/exam_sections/53171/11400971 Please help with this ques. Share Sorry, you do not have permission to answer to this question. 3 Answers Oldest Ayushi Jain5 The Official Nerd 2022-11-14T19:08:58+05:30Added an answer on November 14, 2022 at 7:08 pm Cal the New NPV taking into account the cost at the time would be 52500. NPV at t= 2 comes -716.74 discount it back 2 years= -614.48 NPV at t=0= 1783 1783-716.74 = 1,169. Khushboogoyal Pro 2022-11-14T20:31:56+05:30Replied to answer on November 14, 2022 at 8:31 pm Why are we subtracting ? Ayushi Jain5 The Official Nerd 2022-11-14T21:27:41+05:30Replied to answer on November 14, 2022 at 9:27 pm because the NPV was negative
Cal the New NPV taking into account the cost at the time would be 52500.
NPV at t= 2 comes -716.74
discount it back 2 years= -614.48
NPV at t=0= 1783
1783-716.74 = 1,169.
Why are we subtracting ?
because the NPV was negative