ACCA F9 Revision Download F9 Specimen Paper
ACCA F9 Specimen Exam Section B Question 4
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Bit I did!!!
Fixed costs are 170 at current prices.
At time 1 they are 170 x 1.04 = 177
At time 2 they are 170 x 1.04^2 = 184
and so on
(although rather than keep repeating the arithmetic, it is somewhat quicker to saw that time 2 is 177 plus another 4%. i,e, 177 x 1.04 = 184. But it doesn’t matter how you do it.)
Thank you sir
You are welcome 馃檪
Hello Mr Moffat, please I was wondering why in this question 4a in part i, under the NPV computation….when calculating the sales price and the variable cost, you applied the rate of inflation (increase) and raised the figures to the power of the years e.g in year 2, you did 70x$20x (1.03)^2, etc. but when you inflating the fixed costs, you simply did not?