Question No 4(with answer) on Basic Capital Investment Decisions or Investment Appraisal Techniques

Below is a simple question and answer to illustrate on the basic capital investment appraisal technique re:NPV,cost of capital and treatment of inflation:-

Question No 4 on basic capital investment decision or investment appraisal techniques

Part answer to Question no 4

Complete answer to Question 4

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Capital Investment Appraisal Test Question &Answer CAP1

Company ABC has developed a new product for which a growing demand is anticipated.

Yearly Sales Trend

Units

1 st year

20,000

2 nd year

30,000

3 rd year

50,000

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