2012年ACCA考试《F9财务报告》讲义辅导14

2012年ACCA考试《F9财务报告》讲义辅导14

Net present value to infinity
　　Automatic model
　　NPV µ= NPV of the project/PV of annuity of appropriate years and rate
　　Discount Rate
　　= £17,130,000/3.736
　　0.155
　　= £29,581,405
　　Super model
　　= £18,920,000/3.605
　　0.20
　　= £26,241,332
　　Having calculated the net present values of the two projects to infinity clearly one can see that the automatic model has a net present value of about £29.5m whereas super has a lower net present value of about £26.2m. This means that the automatic model will give a higher return to the shareholders of Samco plc. This is the model the Board should manufacture and sell to their customers, because shareholders� wealth will be maximised by taking this course of action.
　　Conclusion
　　The main objective of this second article in the area of project appraisal was to demonstrate to readers that cases might not necessarily be straightforward. Aspects such as inflation, taxation and unequal life spans must be understood in order that candidates can competently answer questions requiring an understanding of these further aspects. The scenario in Samco plc should be carefully followed ensuring that you understand how the author has used the available information to answer the question.