ICAN SFM | May 2026 Q1(a) | NPV Made Easy (Part 1)

In this session, we begin the solution to May 2026 ICAN SFM Question 1(a) by working through the operating (profit and loss) cash flow section of the Net Present Value (NPV) calculation. In this video, you will learn: ✅ How to correctly interpret an ICAN SFM NPV requirement. ✅ A step-by-step presentation format for NPV workings. ✅ How to identify the correct starting point for your calculations: ✅ How to incorporate inflation correctly. ✅ How to treat tax-allowable depreciation (capital allowances) in investment appraisal. ✅ How to calculate the operating (profit and loss) cash flows systematically. This lesson focuses only on the operating cash flow component of the NPV. In Part 2, we will complete the remaining cash flows, including: Initial investment Working capital Terminal cash flows (where applicable) Final NPV calculation and interpretation If you are preparing for the SFM examination, this is exactly the method you should master for investment appraisal questions. 📚 Question: May 2026 ICAN SFM – Question 1(a) 👍 If you found this lesson helpful, please Like, Subscribe, and Share it with other ICAN students. #ICAN #SFM #InvestmentAppraisal #NPV #StrategicFinancialManagement #Finance #ICANSFM #ExamReadyLearning #FinancialManagement #DCF