[310zcx]

Thanks. Sir
I know if use the cost plus basis then the price =cost*mark-up

If use the total actual cost, the price calculation is same with the method of cost plus basis?
Thanks. Sir

[310zcx]

DEAR SIR,
I have another question, that is the ‘cost plus basis’ is same as the ‘actual total cost’? tight?
thanks so much!

[310zcx]

Yes. I see. Thanks Hanhav
Kind regard

[310zcx]

Thanks Gromit and Hanhav.
However, Hanhav, have a look of feedback Gormit replied above. When calculate the NPV, we should not deduce interest, that is to say interest should not be doubled calculating. So if the question ask FCF to equity, I think we shou do not deduce interest. What do you think?

[310zcx]

It might be a performance management I think. Performance measurement is how to measure the key success factors and some problems countered when measure the factors.
So change budgeting approach should be performance management, it did not involve the measure factors.

[310zcx]

Hi Hanhav
Did you understand when calculate the NPV, why examiner use 141840? When calculate the free cash flow to firm we should deduct the interest and tax as well, but the answer only deduct the tax? At I explained above, if deduct interest and tax, added depreciation, the result would be 121260.so I am confused about it. Would you know the reason behind it? Thanks.

[310zcx]

I know it should be discounted all cash flow when calculating the MIRR. I just want to know I do not use the 4.5% information. Use the PV of return phrase and PV of investment to calculate. Is that right in this case?
2 I think use the 141840 is not correct when calculate NPV. We should use 121260 instead in accordance with the method of calculating FREE CASH FLOW TO FIRM! Is that right?
Thanks in advance.

[310zcx]

The result is different, so if in the exam, I could get marks if use either of method even results are different am I right? Thanks so much!

[310zcx]

Thanks.

[310zcx]

Yes for the information system, the overall purpose is collect information which is correct and reliable for decision making. But what the didference between EIS and MIS. What the important point for each of the system when I arrange my answers.
Thanks so much.

[310zcx]

Thanks. John

[310zcx]

Oh. I misunderstood meanings of this sentence. Thanks John so much.

[310zcx]

The second point I understood.
However, for your first point. From our lecture notes, money market hedges should borrow or invest foreign currency. Also the question states that company will receive Euro in two month. So I think for parent company they will receive Euro and then sell Euro and buy France. So why should I borrow France now not Euro. It is conflict with notes said. Thanks.

[310zcx]

Thanks John.

[310zcx]

Ok. Thanks. John.

[310zcx]

Clearly. Thanks.

[310zcx]

For the second one you answered. I know 15 should be used in the part ii. The 15 in part ii is Mije’P/E. not this number I stated above. What useful about this 15 I stated sentence above. Thanks.

[310zcx]

So. In the foreign investment APV. I should calculate the additional tax separately. Do not allowed to integrate into the basic NPV calculations right?

[310zcx]

Ok. Thanks. John

[310zcx]

Ok. I see thanks.

[310zcx]

I understand. Thanks.

[310zcx]

Yes. NPV
If it should keep it as $. The sales price and the component bought from Tramont, all of these figures are quoted as $. but we should convert at GR. I am still do not understand why only this figure should keep as $. It seems does not make sense because this 4 contribution arises due to brought from Tramont and cost $7. why examiner convert 7 and keep 4 during calculation! If I convert during the exam? I wil lose marks? Thanks John.

[310zcx]

For your answers for the second Q. So if I do not inderstand this meaning, and process the depreciation regularly. Could examiner apply penalty for me?

[310zcx]

Thanks. John. Your explanation is so clear. I understand.

[310zcx]

Thanks. I understand.

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