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For the NPV i got between 10m-11m
The benefit of using CAPM is it reflects the required return on investment along with a risk of premium of the entire project. such risk include the business and financial risks such as business structure and capital structure of the firm given that the risk remain unchanged. This method is more certain than the DCF .Since the DCF based on forecast ed sales and production units this risk a high degree of uncertainty and also it shows that inflation rate is fixed when in reality the inflation rate varies based on economic conditions.hey i like to share what i did on the last 2 structured questions
31.a.Indicated what will you save if you were given the early settlement discount by suppliers{therefore i focused on payable days and purchases from the supplies instead of receivable and sales since it is given by suppliers and not give by us .i believed acca put sales 1st to confuse you if you didnt read it carefully}
i used the purchases from the suppliers which was $1.5
the og payable period was 60days {current payable would be 60/360*1.5} $250,000
revised payables days {if we pay within the new days offer we will pay}30/360*1.5=$125,000
change in the payable{the amount we owe}250 000-125 000 = 125 000
change in finance cost based on the change in receivables 125 000* 4%= $5 000
the administration cost would increase $500 which will reduce savings =(500)
the discount given was 0.5% which will be 0.005 * 1.5m=7500 we will save on purchase if discount was given
total saving if we’re given discount by supplies ie on purchases we will save =12 000
[5000-500+7500]
b. i got around the 8281{can’t remember but it was some way around there}
c. help with receivable 1.credit control
2.credit analysis
receivables collectionThank you so much 😉 but can you inform me on how you go about choosing
the P papersi recently started to self study because i attented a study school for a year and the experience was horrible …the lecturers would move at a rapid speed and did not explain it as well as these lectures….i did F1 F2 F3 F4 at the center and only past F1 but i started using opentuition last year and a extra few notes by myself and i saw a tremendous improvement. Last week i attented my F3 exam and past.:) Studying for F2 F5 F6 in December. My understanding is much better and my confident was booster by seeing so much sucess by other who did the same . I just thank God everyday for making me find Open tuition
