So I just finished (partially) taking a Final Exam in Becker's software for BEC and I was really confused and shocked that I got an NPV MCQ wrong but GOT the payback period method correct (when for both questions I did the same type of math).
In the NPV MCQ: the "correct" answer to them was NOT to include the costs of installation and shipping to the initial cost of the investment. Therefore "their" depreciation was just the Cost of the Equipment / # of years.
The next MCQ (payback period): the "correct" answer to them was to include the cost of installation and shipping to the initial cost of the investment. Therefore "their" depreciation was Cost of Equipment + Installation + shipping / # of years.
Isn't the depreciation determination the same for both methods? The cost of putting a machine together is added to the cost of the machine itself - regardless if it's NPV or Payback!!!!! Am I wrong or is Becker wrong????? Hopefully someone can clear this up for me - ahhhh!