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Evo9 wrote:
Section C was NPV & Capital rationing (non-divisible) and there was one really tricky sensence, that made me re-do the whole part – It was something like “The projects can be funded downwards, but not upwards” – how did you all embrase this, I was really shocked?.I took this as though they were divisible. It was worded weirdly. I think it said that the projects can be “downscaled” which I think would mean that they are divisible.
There were lots of questions in this exam that were structured in a way that I hadn’t seen in past papers. I spent too much time on section A because of this and was tight for time at the end.
Ravi wrote:Section C question on discounted cash flow. Were we suppose to include marketing cost in the calculation on npv?
I think it was just the additional ones in Y2 and Y3. The first part was sunk.