(Note: This is only a suggested answer – the official examiner’s answer will appear on the ACCA website in a few weeks time. If you spot any arithmetical mistakes then please do let me know in the Ask the Tutor Forum 🙂
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hi the answers has been released on the acca website. i’ve compared the answers it seems that the npv and pv for year four is wrong ,please can u help me with this as i am struggling.
for year 4 after tax benefit is 2347
I don’t know why you are bothering looking at different answers (the link to my answer was removed as soon as the examiners answers appeared) 🙂
The reason for the difference is due to the treatment of the capital allowances in the final year. In my answer I continued to charge writing down allowance, but in the examiners answer there is a balancing allowance which is more correct.
This is all explained in my free lectures on investment appraisal with tax.
Please share anyone F7 March 2017 , Question paper with answers
You can find what questions and answers are available on the ACCA website.
They are copyright of the ACCA – sharing copyright material is illegal and is not allowed on this website.