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Thank you both iyamu and John.
I understand we add the value of the scrap value to the value of the investment to get to the total investment.
As a general question, apart from this specific exercise, is there anything else (in addition to the initial investment and scrap value) that we want to include to get to the total investment?
Thank you
Thank you for this. One more thing please I am not entirely clear.
It seems when we discount for one year we divide by 0.08. Instead when we discount for one extra year we divede by 1.08. If we were to discount for two extra years (instead of one) would we divide by (1.08)*(1.08)?Thank you
Thank you Sir, I know what was my mistake. Simply (400-380)/(5000-6000) will give -0.02.
I inverted the quantities position at the denominator, instead, I understand we want to keep them in the form “the biggest minus the smallest”.Thank you Sir, I understand to keep the two approaches separated.
in my calculations, I was including the probability for any of those outcomes, and then deciding according to the maximin criteria. It is clearer now, I will just ignore the probability of each outcome if the question asks any of the maximin/minimax or regret.
Thank you
LeoThank you, I have rewatched it and it is much clearer now. Also I realised that your example is even more interesting because of the timing factor for tax. This now seems much easy than before in comparison!
Much clearer now. Thank you for explanation, I didn’t find i
This question straightforward.Thank you for the reply. I am still a little bit not clear on how we get to the $5 “so for every one component bought from outside instead of being made, they will be earning a contribution of $5 from this other item”.
In addition I am trying to reconcile why Kaplan is saying that the answer is $15.50…
Thank you
Thank you for the prompt reply.
I watched your lectures since last September 2019 could I please confirm which lectures have been updated since?Also is it likely that one or th big data question will be one of the 20 marks question in sec C?
Thanks
LeoHi Sir,
Thank you for the reply, I am still not completely clear about it…
The question is n.43 pag.3 from the “examiner’s report – Jun2016” withing the ACCA examining team guidance.I cannot read any mention of Zal having paid a consideration to Yeo but the correct answer still is option D (Yeo cannot revoke or withdraw the offer).
Is there something I am not seeing?As a general rule, could I confirm with you if this is correct and exhaustive?
Withdrawal=only before offer reaches offeree.
Revocation=anytime before acceptance but if the offeree specifically pays a consideration for a “thinking period” the offer cannot be revoked.
Thank you
LeoIt is much better!
I understand now, thank you for your prompt and clear reply.
Leo
I’d like to add also that the F2 ACCA notes I am using relates Sept/December 2015 exam, could I still use them as a main reference or the changes since then have been such that you recommend to either reprint the most updated ones on the website or buying a new book? I have only noticed the difference when I came across chapter 5 which in my version is: “inventory control” – whereas now it is: “ORDERING AND ACCOUNTING FOR INVENTORY”.Is this the only chapter that has been substantially updated since Sept/Dec 2015 exam?
I’d really appreciate your advice,Thank you
LeoThank you for your answer.
I am listening to your lectures and I find them clear and useful!
Regarding the Revision Kit I have the Kaplan’s version of Sept 2015 – August 2016.
Again, do I need to buy the last version?
