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<cite> @narinemalakyan said:</cite>
It was receipt as far as i remember, so the company sould be borrowing for 3 months.every year inflation was required to calculate the incremental WC required each year
My paper was all messed up just bcz of this NPV question…I used 1.55 instead of 1.055 for VC ..and my NPV came (7000,000) ….and I wrote comments on this too :p ….later i corrected it but by cutting and overwriting but I don’t know whether examiner accepts re writing and over writing..
Did anyone inflated the scrap value…like 5000,000 * .05 = 250,000 * (1.049)^4 ……………………..supposing general inflation rate was 4.9%
labour rate planning variance (11.4-12)*.6*20000
anwer comes accurate if u do as above
but i have in kaplan book as well as in BPP that the best approach is to flex to actual pro levels and that was 20500 in the question….whats the right method?questions were easy but time was short for such a long paper….variances ruined my paper though i have been practicing variances a lot but due to pressure i was unable to work out std labour rate per hour ……i solved abc& transfer and hope to get best marks in that question….cvp was easy one…..per.measurement was ok….but variances that question was difficult especially when u have short time u cant solve that sort of question