# ACCA F9 Revision December 2010 Question 1 NPV and CAPM

1. says

part b of the qns, does critically discuss means to just list down the flaws, in this case, the flaws of directors’ views on invt. appraisal?

2. says

Sir, the sales should increase by 750,000 units every year, right? How did you understand that the units are constant every year?

• says

I know that the wording can be confusing, but whenever the examiner words it like this it means that they go up by 750,000 a year from what they currently are. Not that they go up by an extra 750,000 in each subsequent year.

It is the same as this: suppose you currently earn 1,000 a month. I am your employer and I say that I will increase your salary by 250 a month. Surely you will then expect to be getting 1,250 a month. You will not think that I meant that you will get 1,250 next month, then 1,500 the following month, 1,750 the month after and so on

• says

Oh yes, I got it. Thanks for the good example.

3. says

Hi,

Thanks & Regards

4. says

Thank you!!! A very good lecture to watch in the last hours before the exam!

Worried about the time management during the exam but hoping it will be a fair exam!

Maha

5. says

Hi
Thanks for the lectures.
Can you please explain when you said for the Equity calulation for CJ you used the equation backwords. Please can you show how you got an answer of 1.43 thank you

• says

Ba = Be Ve/(Ve + Vd(1-t)) from the formula sheet

If you multiply both sides by (Ve + Vd(1-t)) and divide both sides by Ve, then you get
Be = Ba (Ve + Vd(1-t)) / Ve

We know Ba, Ve, Vd, and t. So now you can calculate Be

6. says

thank you very much for your explanations, it is very help for our exams, but their is a problem, when I take the exam I can not remember for the stages.

7. says

Hiya,
Thank you for such a clear explanation. I would like to ask clarification on the working capital bit, you said that unless mentioned otherwise WC should be added back but when I check my calculations for question 1 of dec 2009 paper with suggested solutions, I realise they did not add the WC back. Would I have lost marks if I had not written I am assuming the extra WC will be just for the life of the project?