Question ID: ICMA 10.P2.289 02 300 (Topic: Net Prevent Value Method)
- This topic has 1 reply, 2 voices, and was last updated 9 months, 4 weeks ago by Lynn Roden.
In the question it asks for the cash flow from year 5, however, I don’t understand why the cash flow from sales of land, building and equipment is included in the cash inflow, since the question does not necessarily mention that those will be sold by the end of the 5 years.
I’d like some clarity over whether we have to always assume that investments will be sold at the end of the period, or if it depends on the question. Thanks!
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