[atiba03]

Sir, why was this question not solved using APV. Since the project would be funded purely by debt.

[atiba03]

Hi John,
I have been working out Marengo from the ACCA Dec 2010 Past Questions and Answers. I expect that the value of d1 should be -0.149 instead of 0.55.
It appears the formula used in the solving the problem was wrong. ACCA used

d1 = [ln(Pa/Pe) + (r + 0·5s^2)t]/(st^1/2)

Instead of using

d1 = [ln(Pa/Pe) + (r +( 0·5s^2)t]/(st^1/2)

Please could you confirm if i am right?

[Author]

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