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  2. I don’t understand why in calculating the NPV under the SENSITIVITY ANALYSIS example1 at one point you use the Present Value table and at another point, you use the Annuity table. how do know when to use the PV or Annuity table

    • The annuity table is used when there are equal cash flows each year. You need to watch the earlier lectures where this is explained (and if necessary the Paper MA (F2) lectures, because this is revision from Paper F2).

  3. Hi Johan,
    Thanks for lecture. a quick question. in example1, i understand that we calculated IRR, my answer is 15.84%.
    but i do not get the reason behind (16-15)/15%.
    Can you explain please.
    Thank you
    A

  4. Hi Mr John,

    great lecture as always. I sat June exam and I failed by few mark. there was a 7 mark question in section c part b with simulation- I left the question bcos I hv no idea of the calculation. asking to compare the Npv of the probability in A to the npv result using simulation.
    could u please give a short example on how we can go about the calculation.

    many thanks, as always.

    • I cannot give a short example here. You should find an example in your Revision Kit. If you are not clear about the answer to that example then ask about it in the Ask the Tutor Forum and I will help you there 馃檪

      • Hi John,

        I had the same issue on my June exam in that the section C question asked to calculate and comment on the simuation – I studied with Kaplan and was told we would not have to do this calculation so were not shown it, and this ultimately led to me failing my first exam! My revision kit does not show me how to calculate it – Are you able to suggest any other materials / video’s which might?

        Many thanks

      • I assume that you are referring to question 32 on the March/June hybrid exam that is on the ACCA website.
        Although Kaplan were wrong to tell you that you would not have to do the calculation, I can understand why they said this – this is only the second time ever that you have been asked to do this in the exam.
        Although the arithmetic did count for 12 marks, part (b) was separate and was an easy 8 marks. That would have failed the question, but should not have failed the exam.

        If you look at the posts in Ask the Tutor then I have already explained the answer to the question – there is only really one thing that needs learning, and then it is easy.

        If you can’t find the post, then look at the answer on the ACCA website, and then ask about what you are not clear about it the Ask the Tutor Forum and I will explain again.

      • Thank you for your explanation of this, I will go and check it out. I did not answer any part of section C as I thought part B was relating to the answers in part A, I must have been so freaked out by them asking for the calculation that I started to panic and missed what they were actually asking.

        Thanks again

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