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Dear Sir, please help me to explain the meaning of requirement of ” critically discuss” in section C. For example in Q155 of BPP Kit, the question require critically discuss 4 reasons why NPV is regard as superior to IRR as an investment appraisal technique.The answer is 4 advantages of NPV comparing with IRR.But in Sep/Dec2017, the question is critically discuss the view of the diector on investment of appraisal.And the answer concentrate to criticise this view(the disadvantage).Please help me to explain what exactly “critically discuss” means? Thank you
The word ‘critically’ is really rather redundant.
The phrase just means that instead (in the case of Q155) of simply just listing 4 reasons why NPV is superior, it wants you to explain why it is superior.
Similarly, in the second question you mention, it wants you to explain (discuss) why you agree or disagree with the views of the director.Dear Sir,
About the second question, as the document named “read the mind of the FM maker” published on ACCA website , the examiner explain that if the candidate discuss about the agreement with the views of the directors, the candidate will not be get any marks.
The candidate is required to discus about the the disagreement with the views of the directors. So I understand that the meanings of word “critically” in this case is different with the first question.
Please help me to explain this.
Thank you.No – the meaning is not different. You need to discuss the directors views. The reason in this question that agreeing with the views would not get marks is that there is nothing to agree with – there is no basis for assuming 4 years, no basis for assuming the terminal value after 4 years is 5%, and no basis for a maximum payback period of 2 years.
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