IndigoLearn

Forums

All Topics Accountancy Auditing Corporate & Other Laws Direct Taxation Indirect Taxation Financial Management Economics Costing Strategic Management Maths & Stats Exams Others AFM Financial Reporting CFA Level I

Doubt

Financial Management

Sir, In the question a point is given like this *Inflation is expected to be 6% per year Why this point is ignored and not taken into consideration Video Details Financial Management Investment Decisions 113. Illustration 41 - Q4 May 2018

Narasimha G

CA Inter

★ 2K+

27-Apr-24 16:44

Answers (3)

Best Answer

This question is concerned with treatment of adjusting inflation with discount rate which belongs to the chapter “Risk Adjusted Capital Budgeting” which is currently not a part of the syllabus. So Please ignore

aditya yanamandra

Faculty

28-Apr-24 13:13

It's not ignored, it has been taken into consideration on PVIF of 6%

213 823 Afham Ahmed

CA Inter

★ 4K+

28-Apr-24 01:06

Question only says check whether project is feasible using NPV in real terms that is discount factor 12%, some times additional details are also provided to confuse, Imp is what is the answer question is asking