PLEASE HELP! Question about NPV & Accounting Stock Value

gevork · Feb 26, 2005

Hi All,
I need to know if stock was purchased for say £20 a unit and i have 1000 units in stock. They now have a replacement cost of £25. It cant be used for any purpose other than one client do i value the stock cash outlay before discounting as its cost at time as stock (£20) or the current value of £25.

Help would be appreciated.

Thanks

Gevork

Alpha · Feb 26, 2005

Not really sure what you are trying to get at with the sparse details but if you are doscounting cashflows it would be the £20 per unit that you have spent which would be discounted..

Obviously if the project (whatever it is) is over a number of years the cashflow will be different for each year.

Hope this helps

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PLEASE HELP! Question about NPV & Accounting Stock Value

gevork

Alpha

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