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hi,do you get penalised in the exam if you find the leasing option and then add the original investment cost because that what i did..would i loose all the 10marks
No – they mark each bit of workings separately and so you will not lose all 10 marks.
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Hello I want to ask that the question Asop co while calculating financing cashflows why they did not incorporate operating expenses in part à pls help me
The question specifically says ‘based on financing cash flows only’.
Financing cash flows are the cash flows caused by the way we finance it, and are nothing to do with the operating flows (i.e. the flows coming from the machine itself).Anyway it would be irrelevant when deciding how to finance it because the operating flows would be the same whether we leased or whether we buy.
(please in future say which exam the question is from – it saves me time but also means others can benefit from my answer. This question was from the December 2009 exam.)
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