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investment appraisal

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › investment appraisal

  • This topic has 3 replies, 2 voices, and was last updated 5 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • March 11, 2021 at 10:52 am #614179
    Avatartushargujral
    Participant
    • Topics: 66
    • Replies: 95
    • ☆☆

    in the discounting when cash flow is uneven like in example 3. do we need to calculate the months also by multiplying by 12 or we can leave the answer as 3.79 years

    in kit, I saw that they have mentioned the years and months

    March 11, 2021 at 1:01 pm #614187
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54838
    • ☆☆☆☆☆

    The discounting (which is only relevant in part (b)) has nothing to do with whether you show the payback period in years or in years and months.

    As to whether you need to show the answer as being 3.79 years or as 3 years 9 months will be made clear in the question requirement. Most likely you will be asked to show it as years (so 3.79 years).

    March 11, 2021 at 3:38 pm #614195
    Avatartushargujral
    Participant
    • Topics: 66
    • Replies: 95
    • ☆☆

    okay sir thank you

    March 11, 2021 at 5:10 pm #614203
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54838
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘investment appraisal’ is closed to new replies.

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