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investment apraisal

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › investment apraisal

  • This topic has 5 replies, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • May 27, 2015 at 8:03 am #249441
    student07
    Member
    • Topics: 193
    • Replies: 162
    • ☆☆☆

    Sir in article two of 50 marks,just wanted to know about working capital.It says about working capital that it will need to be adjusted by euro 10 for each euro 100, so am i not right that after calculating wc i mean the incremental value then multiply by 10 and divide by 100. But i think its only taking the incremental please help where i m going wrong. Thanks

    May 27, 2015 at 9:15 am #249485
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54733
    • ☆☆☆☆☆

    I am sorry, but I have no idea which question you are asking about!

    May 27, 2015 at 11:12 am #249523
    student07
    Member
    • Topics: 193
    • Replies: 162
    • ☆☆☆

    Sir it is 50 marks question on international investment appraisal part 2,technical artical fromAcca website.
    One thing more could u please advice what should be done in these last 4-5 days.
    Thanks

    May 27, 2015 at 3:20 pm #249574
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54733
    • ☆☆☆☆☆

    The working capital at the start is 10% x 313.50 = 31.35.

    In the second year, the revenue increases by 368.23 – 313.50 = 54.73. So the extra working capital needed is 10% x 54.73 = 5.47.
    In the third year, the revenue increases by 636.01 – 368.23 = 267.78. So the extra working capital needed is 10% x 267.78 = 26.78

    And so on 🙂

    As to what to do in the last few days – everyone has different ways of studying. I would spend the time looking at the last few years exam questions – not so much the calculations, but getting used to the wording of the questions, and reading (and learning) from the written parts of answers. The last day before the exam I would relax completely and go to bed early 🙂

    May 27, 2015 at 9:31 pm #249705
    student07
    Member
    • Topics: 193
    • Replies: 162
    • ☆☆☆

    Thank you sir.

    May 28, 2015 at 9:01 am #249763
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54733
    • ☆☆☆☆☆

    You are welcome 🙂

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