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Namah1, I just remeber with this question, there was 14 million available and we had 13 million to apportion which gave 0.2mill off the NPV that needed to be deducted from one of the ranked projects. I didn’t include project Z but thinking about it maybe I should have but I’m sure In the question it said not to be included or deducted from the 70M
What was your answers on projects Z npv? I got around 4mill I think. I used the 27% of electric as an inflow and tax as an outflow.
Just need to ask you guys, for the gearing calculations I was blank because I didn’t revise this at all and plotted random numbers, would I get any marks for the recommendations?
Overall this was my resit, I scored 49 in my last one which was a bummer and really don’t want to do a resit again or I’m going to lose it lol.
Hope you guys smashed it!!
I had the same NPV question, it was quite tricky, I had a positive NOV of 4m, I just included the 27% as an inflow and the tax as an outflow. But I think I did the inflation wrong and the asset timing(placed it in year 0 when it should have been t1.
Also had the divisible projects, all I remeber is we needed 13m apportioned but one of the projects had 14m initial investment and NPV of 2.8M and this was a minus 200k on that specific project,so portioned against it. It should have had a total npv of 18.2m or 17.2m for divisible.
Did anyone else get this?For the WACC calculation, who used nominal value of loan notes instead of the share option?
@crapants, also within the WACC there was share redemption, I didn’t take the share option I used the nominal loan note value instead
@crapants, I see what you mean, it could have been that but just don’t know why would they ask that when it’s NFP. If they did just a stupid requirement to see if we can do the calculation I guess.
Your WACC was 13% should be right, I got that too, there was CUM div for ordinary shares and if I remeber they slipped in 20×7 instead of doing 20×6 for ordinary shares, remember any of this ?
@crapants, did you get a WACC question too?
@crapants, my mind has gone blank on the TAD part, I don’t remember the wording of the asset value.
But why would there be TAD on the depn, it was a not for profit organisation. So for the lease I didn’t include any tax payments. So why would we do WDV for year 4 buying the asset
But I think your answer is right because you had a 4k diff which makes sense when doing buyvlease. There was always a small diff not a massive diff.
@crapants, in terms of depn why would we take WDV, when in the question it said it would be 20% of the asset value.
Wouldn’t it just be 20% of the asset and populate in the final year?
My calculation made it seem my lease was cheaper would I still get a mark for stating the lease was cheaper even though it’s wrong due to my calculation?
In section C I’m pretty sure it said don’t include depn for the buy which threw me off. Maybe makes sense why I had 653k for buying the asset dammittt, but Yh my lease was 353. The discount rate was 9% or did we all get a different rate?
You think that’s about 2-3 marks lost because of my buy decision being wrong or would it be just one mark and the rest carried forward.
Don’t think buy was cheaper in regards of the buy v lease question (Aid),
I remember getting 353k for the lease and 653 for the buy, I know my buy Decision was wrong but pretty my lease was right. The lease was starting t0
Who remembers a section B question relating forex, regarding translation risk but was worded quite lengthy?
@leep2310, For the WACC redeemable shares, I used the nominal loan notes as redemption not the share option?
Did u do the same?
The buy v lease when inflating the 12k figure this was quite hard, was we meant to inflate 12k by 20% plus the 12 value included. So 12k x 0.2 = 14400 including the 12k value and the same for year 3 etc = 14400 x 0.3 + 14400 = 18720 for year 3 etc
@leep2310, the other loan note question prior to the 93.05 I guessed, I picked the 98 value I think, didn’t have enough time.
I remeber there was a section A question where it was tesos to dollars I inputted 1.63 I think it was a confusing question but I’m pretty sure that was the correct value
@josukegiorno10
@leep2310
Any chance we can discuss answers on a chat instead of this poll?@josukegiorno10, I remeber something with funding gap and chose that option too, the only option made sense to me
@leep2310 with Section B I had business valuations in regards to loan notes to, but I picked the answer of 93.05 which I think is right.
Had an ordering policy question, but remeber putting down 31500 which I couldn’t get my head around and which I practiced so much. What a fail!
Did you get anything similar?
Also had a money market hedge, think the answer was like 84k approx
@leep2310, the WACC question did have a big MV, did u use nominal value of loan notes instead of the share option?
And with the buy v lease, I remeber the maintenance costs starting as 12k then inflating 20% 30% 40%, this got to me I just froze. But Inflated the 12k by 20% for y2 then inflated y2 figure by 30% plus y2 costs if that makes sense.
So annoyed because I missed out a few theory questions due to time and hopefully banking in these two calculation questions or I’ve failed ?
My buy and lease question was quite tricky, it was 300k initial investment, and 12k for maintenance that increased 20% 30% and 40%.
When inflating these values I’m pretty sure it said to inflate from previous years. So for example 12k the first year, then 20% which made it 14400 for the second year and then 30% of the third year etc
I had the same exact, I had a WACC and lease and buy,
I remember something with shares in the wacc where I just froze and couldn’t figure it out and used the nominal loan note as redemption. I got a wacc of 13% not sure if this is right. What did you get?
With my lease and buy I had buy at 635k and lease at 353k both negative but feel like I went wrong somewhere. So annoyed!
I had the same exact, I had a WACC and lease and buy,
I remember something with shares in the wacc where I just froze and couldn’t figure it out and used the nominal loan note as redemption. I got a wacc of 13% not sure if this is right. What did you get?
With my lease and buy I had buy at 635k and lease at 353k both negative but feel like I went wrong somewhere. So annoyed!