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Hi Chamil, do you remember points that were split between the task one and two?
ThanksThank you tsuyoshi10, I found section a and b hard unfortunately.
Fingers crossed Junaid98, hopefully you’ve scored above 50 this time round. I know how painful failing by one point is, been there!Hi Junaid98 , I’m pretty sure it stated in the scenario that project z was required due to government regulation and it was meant to be paid from the 70m available, maybe someone else can confirm?
I got 2 something for npv for project z, did you inflated energy costs before calculating 27% savings, and did you put your initial initial investment in year 1 (it was payable at the beginning of “next year” therefore end of year 1). I also included savings from energy as inflows and tax as outflow *no tax payable on initial investment, and discounted by 8%Tsuyoshi10 yes, from my understanding for divisible projects you can allocate as per ranking to maximise npv then if you have a leftover capital you can apportioned to most profitable project, where none divisible projects must only be accepted fully and cannot be split so you allocate by highest ranking at first then you look what you have left and if you can use on any other project even if the ranking isn’t the highes, so you maximise npv. I first used the capital for project z as a must then as per ranking and I was left with 8m capital that I fully used on first project that cost 8m.
Junaid98 I had this question with divisible and none divisible projects and had similar answers but I’ve changed my answers on this last minute when I realised it said in scenario that project Z was mandatory due to government requirements to reduce co2 and 25m must have been used from the total 70m capital available so although the estimated npv by the company given in the scenario was zero I still included this in my calculation of maximum npv that could be achieved, basically this reduced my available capital by 25m. I made my assumption to clarify why I did that but not sure if that’s correct. And yes you right one project must have been apportioned the spent was 14 but only fraction was available.
I agree with you Lisa, don’t think examiner was very clear there as of what they have expected us to do. It didn’t however state that electricity was only for this project alone and in what form savings would be received. I therefore assumed electricity was a cost that was incurred by entire company not attributable to this project alone. It did stated within scenario that npv was predicted to be zero based on assumptions that investment would be offset by the savings in electricity. Perhaps received in form of cash grant on which you pay tax? Doesn’t charge fact the exam was very difficult and scenarios had a lot of distractions and some things weren’t just obvious. I found section a and b very difficult and who knows maybe you nailed the multiple-choice questions and still grant yourself a pass, fingers crossed! : )
I got that at first and then realised in the scenario it said that investment was required at the start of second year (so end of year one not in year 0 as it usually ihappens). That changed npv to 2 something for me.
The question stated that you had a machine costing $400,000 with residual value in year four don’t remember now if it was 100 or thereabouts and it also stated that investment required initial investment of $75000 that will be recovered in full in year 4. In my question there was definitely no tax in arrears, it actually stated ignore taxation. Discount factor 12%
I sat my exam in the morning. The nvp was calculated on new investment where sales were estimated for four years and was meant to fully stop in year 4.
I did have a similar npv question in section a or b where there was tax payable in arrears.I think there were different tests, I had to calculate NPV without tax, without tad, without inflation, just with sales, variable costs and attributable to project fixed costs, initial investment refundable at the end of investment period and cost of machine with residual value, second question to that was to calculate sensitivity to sales volume.
Same happened to me, system wouldn’t launch, I’ve waited 40 minutes then called customer support line which was busy, after lengthy 30 minutes I had an answer, lady explained that some other students also experienced similar technical issues and it was caused at Acca end. She said emails with apologises will be sent out and people who experienced technical issues can re book
Did just like you. I have ended up with reduced sales volume for year 2 and 3 and calculated as (10000*.7)+(5000*.3)=8500
I think I ended up with option one equity, there is no interest cost and is less risky to business, to be honest I didn’t finished the last question fully as run out of time!!
I’m sure in the text it says there was an inflation of x % so you should discounted your working capital to end up with relevant amount in year 4, as money in the future worth more than today I ended up with deducting 80000 and getting back in year 4 more than 80000 but im not sure if working capital is subject to inflation
Yes I had npv but ended up with positive. Have you calculated inflated contribution and fixed costs? Have you deducted TAD and put balancing figure in year 4?
Yes I had this question. The question was about trade receivables not just receivables. I choose it retailer, this is because cinema, restaurant and supermarket won’t have trade receivables as they often gets money paid upfront before providing service or immediately after so there is no waiting time for cash to be collected.
aytashi wrote:simk wrote:Did anyone have the veggie pot question? They had asked us to calculate the cost gap and had given the cost per batch and the selling price. I read the situation multiple times but just couldn’t figure out how many units were in each batch (to be able to calculate cost per unit). What did you all do?
I remember calculating the target cost like this. Knowing the $2 is the max comp 1 can charge and they operate with 20% margin, the max comp 2 would sell was £1.60, therefore for the supplier (comp 2) to earn the 15% markup on cost the max cost must be no more than 1.60×100/115= 1.39
aytashi wrote:This is for students who did not attend in March session.
Sorry but how did you calculate 136/52 to be 34/13?? The ratio is 2.62:1 which would make sense as Liability reduced by 48% and assets reduced by 15% so the ratio would go up accordingly.
Kim Smith wrote: @namah1 – there’s no point adding to the stress with speculation on a “much worse set of questions”. ACCA has processes to ensure equivalence between am/pm exams and week 1/week 2 exams just as it has processes to ensure fairness between exam sessions.
Sorry I can’t help it but to worry. I was doing fine with this set of questions and next week may be totally different story. I am also a full time worker and a mum who was self educating my 6 year old since lock down as well working and learning at the same time. It’s never 100% as it’s down to luck which set of questions we will get. It would only be fair if there was only one set of questions for everyone (I’m not talking about repeating the exam though it’s obvious the questions will be different). I think that everyone is entitled to express their worries and opinions this is what this forum is for after all. There may be more student wondering the same questions as me and sorry. This was a very stressful experience and I shall hope that next week there will be no issues.
sonia94h wrote:Section C included market share and market size variance questions and a 20 mark question to discuss the performance of a company. I had technical issues though and had to rebook for wednesday 10th. Does anyone have previous experience of a week 2 exam? Will the exam be entirely different or could it still include the same questions mentioned in this thread?
So we’re on the same boat Sonia, I had tech difficulties and it kicked me out of the exam an hour before the end, I was gutted as I was doing well now I’m worried it will be much more difficult next week! I was also asking same question but no one answered as of yet!
Is anyone resitting next week? I’m really worried I will get much worse set of questions…I was doing Ok before the exam window crashed on me an hour before the end of the exam- Really stressing now about next week.
GraceOla wrote:Oh, the questions were different then. I had to pick one of four options.
Really? How strange as rest of the question was exactly the same as the one I had… What was your questions in section b and c?
GraceOla wrote:Are you sure about the last part? Cause I swear I did not see it ?????
Unless you had a different question to me as I couldn’t choose any option- I had to write the answer manually to two decimal places. But all other text was the same as your written
GraceOla wrote:Are you sure about the last part? Cause I swear I did not see it ???</blockquot</blockquo
Yes positive 100% it said that all sales proceeds will be used to reduce liabilities
xHolmesyx wrote:Thanks. Do you think I would have got any marks for saying about the planning and operational aspects or no because I didn’t mention sales.
Well I’m not sure what you exactly calculated in your variance but you did say that market size was planning and market share was operational and then you mentioned that market size may be out of control to manager, so to my understanding if you calculated variance wrong you may not get any mark for calculation but if your assumptions and performance valuation based on YOUR OWN figures made sense you should score some points in the discussion part because your own number rule apply as for what I read in technical articles
