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Rounding differences in NPV

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Rounding differences in NPV

  • This topic has 5 replies, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • November 1, 2021 at 1:02 pm #639654
    tabasumze
    Participant
    • Topics: 40
    • Replies: 48
    • ☆☆

    Hello sir,

    What if there is a difference in the NPV calculated by me and the actual NPV?

    For example NPV calculated by me is $1206000
    Actual NPV is $1215000
    This question is from Section-C

    The difference is due to rounding off..
    Will my answer be still valued?

    November 1, 2021 at 2:56 pm #639683
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54705
    • ☆☆☆☆☆

    Roundings are not a problem in the real exam.

    In Sections A and B then either the question will ask for an answer to (say) the nearest thousand, or the computer will be programmed so as to accept a range of answers.
    In Section C questions it is the workings that are marked rather than the final answer.

    November 1, 2021 at 3:59 pm #639690
    tabasumze
    Participant
    • Topics: 40
    • Replies: 48
    • ☆☆

    Whenever I checked the answers I thought I was wrong.. Thanks for the clarification.

    I have one more doubt,
    While doing the Section C’s, only one excel sheet is provided per question where do we show the workings? Scratch pad is included but it does not get submitted with the answers.

    Do we need to show the workings below the answers or is there any separate page for that?

    November 2, 2021 at 6:42 am #639722
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54705
    • ☆☆☆☆☆

    Tha marker is able to view whatever formulae you have used in the spreadsheet and so there is no need to show extra workings.

    November 2, 2021 at 1:24 pm #639772
    tabasumze
    Participant
    • Topics: 40
    • Replies: 48
    • ☆☆

    Okay, Thank you

    November 2, 2021 at 3:37 pm #639784
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54705
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • The topic ‘Rounding differences in NPV’ is closed to new replies.

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