ACCA AFM - NPV, APV and MIRR | Detailed Explanation | Question 10 Tampem Co | AFM Exam Practice

[@oladipoomotolani7436]

Thank you for the video, very explanative. i have a question, when you were solving APV, you used Beta Asset and said the new project will only use equity. This was not stated in the question. Do we just assume this?

[@VertexLearningSolutionsLLC]

Now I don't exactly remember but it must have been mentioned in question otherwise such big assumption we can not make.

[@talentmujaji9333]

I think it's because with APV, to calculate the base case NPV you use the ungeared cost of equity as a discount factor(hence only using equity) then consider the financing impact. This is how I understood it.

[@birjushah8181]

at 48 mins in, your referring to the deprecition charge as the book value but thats not right is it?