[elierobins]

@jimbob1212 said:
I initially got two negative NPV’s due to the 60% remittance but once I added back the sale cost (which was in year 4, at PV), I got a positive figure for both. Did everyone add back the sale which was in PP?

This was a very tough paper.

The hedging on interest rates was a standard question which comes up a lot, so I felt OK with that, the other Section B question was a nightmare.

I add back sale value of the project in year 4 but still get negative npv. Maybe the difference is because of the investment in land & builiding & working capital. I convert the $ value into PP.

[elierobins]

@prof008 said:
Hi Elie,

Just a quick question please, did you answer all questions in the paper you scored 49 marks?

Hi prof008

Yes, I think i finished all the questions the time i get 49 marks. Just have 6 or 7 marks left unanswered. 🙂 But i make sure to jot down an answer for every question which I think is not wise because p7 require quality and not quantity.

[elierobins]

@joashbill said:
Yh i agree..it would be nwise to go start studying for p5 when your marks are already near a pass for p7. i recommend you just study and practice a bit more but just dont continue doing the same thing and expect a different result…tweak things a bit and that will be sufficient. read some more and pratcie more past papers…all the best

Thank you so much for your advice. i will stick to p7 and do things differently from before. And I will also practice alot more past papers. 🙂

[elierobins]

I assumed the same for the scrap value and put it at the end but I didn’t do anything for 40% unremitted to parent.

I got 2 negative npvs and got confused because i thought one of them must be positive.
Anyway the question is too confusing for me with the exchange rate adjustments and everything.
For question 3, I didn’t notice the equity beta given and because asset beta for club was given, I used the beta asset in the CAPM formula to get cost of equity ungeared and use M&M formula to get Ke. (Not sure if i screwed up for this.)
I couldnt finish question 3 because i was running out of time

[elierobins]

Thanks so much I will stick to P7 🙂

I really didn’t know earning 50 marks is that difficult!

[elierobins]

Thank you sir for your reply. I will ask my follow up question in Ask The Tutor forum. 🙂

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