- This topic has 3 replies, 2 voices, and was last updated 4 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘march.june 2016 question 5 part b’ is closed to new replies.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › march.june 2016 question 5 part b
Hi My Dear tutor, I have a question.
Understood this part
Years———DF11%——-Tax saving—–Pv
1-4———-3.102
1-10——–5.889
5-10——-2.787———–112—————312
Years————-DF 11%———Cash flow after tax——-PV
1-4—————3.102
1-infinity-1/0,11=9.091
5-infinity———-5.989————-(2802-785)=2017———12079.813=12080
Coming to overall answer
1280+312-139(Negative N.P.V in part a calculation)=12253
I know i followed tax saving method correctly but what about infinity method?did i get 5.989 correctly?is this correct?my answer is different from the answer showen past paper there is 12257 so is it because of rounding?
The overall answer on your workings should be:
12080 + 312 – 139 = 12,253 (you mistyped the first figure) and the difference is purely because of rounding.
Yea Yea I just mistyped.So I wrote it correctly.Thank you very much my Dear Tutor and your effort is immeasurable .
You are welcome 🙂