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Discounted Cash Flow Further Aspects, Capital Rationing
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when you updated the lectures?
Read the syllabus properly and read the other comments below.
The course notes (and the lectures) are all valid for June 2013.
The treasury function is covered in the notes – there is nothing to lecture on because it is not a ‘numbers topic’.
hello sir …discounted cash flow has deleted from syllabus in 2013 …and the treasury functions introduced..but you have not added or deleted any in f9 papers…..
This will (could) be tested as assumed knowledge from F2 (Where it will be added in the 2014 changes).
@ maat9, I thought as much, I would suggest you check again the 2013 syllabus on page 9 section D 1 (d), (e) and (f). I We will still need to do the same work but with the assumed knowledge from F2.
well said @lukedavizad
Please assist.. Dec 2009…Q 3. I wanna calculate part a TERP not the way it has been calculated in the answer somebody let me know the other optional method we have..
Dear sir
Are you not going to upload any new revision lectures of F9..
it is really helpful, good points , good tutor
thnx a lot OT for making acca’s students life easier…
thanks f9 has been eased for me instead of calming things i real understand the concept open tuition is far better than these colleges were we pay heavily and get sub standard lectures with out you i don’t know how i would have made it thankes
Dear tutor,
Regarding part(c) of Eg1, I am confused.
We choose ABD combination which gives the highest total NPV, but why don’t we analyse the efficiency as we do in part(b)?
ABC: 1400 input, we get 143 output, the efficiency is 10.21%;
ABD: 1500 input, 157 output, 10.46%;
ACD: 1200 input, 136 output, 11.33%;
BCD: 1300 input, 143 output, 11.00%.
(OMG, I hope I’ve made it clear~)
From my view I may think ACD is the most efficient investment combinations and I am wondering whether I got something wrong. Can you please help check my thought? Thx a lot.
@louis06111,
part B is infinitely divisible, this means you can do a fraction of a project, therefore you start with the highest NPV first and so forth what capital is left is invested into a fraction of the project B which 66.6666%.
With part C, capital is restricted to 1600 so you choose the best option that will return highest NPV per project because these projects are non infinitely divisible you have to choose the best option so you only have to borrow or use the amount of cash that is needed.
The key is to find the highest return/NPV for investment
@tameablebunchy,
Thanks a lot for your time and effort,
It does help!
video lecture notes helpful but sometimes difficult to view.