Topic 9 of 12 · Replacement ProjectsStep 1 of 4
Exam 3 lessons

Lesson 9 of 12 · 15 min

Replacement Projects

Build a replacement project's incremental cash flows: the initial outlay, depreciation differences, the missed sale and missed tax effect, and the NPV decision.

Inside this lesson

  1. Why this matters
  2. The core idea
  3. The formula
  4. Worked example 1: the initial investment outlay
  5. Worked example 2: the full replacement timeline
  6. Your turn
  7. Calculator steps
  8. Common mistakes
  9. Quick check
  10. Key takeaways

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