75 bipltonForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › 75 bipltonThis topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts February 16, 2017 at 3:24 pm #372731 shilpamaryMemberTopics: 98Replies: 81☆☆“I have no idea why you want to use 9%.UK inflation is 2.5% and so operating flows will increase at 2.5% per year.52 x 1.025^2 = 54.65 490 x 1.025^3 = 527.68The PV of the investment phase = 50.07 + 453 + 1987 + 789 + 9731 = 13010”i asked how we get 50.7,453 ,1987 etc values ?? February 16, 2017 at 4:53 pm #372757 John MoffatKeymasterTopics: 57Replies: 54767☆☆☆☆☆You did not ask that at all.You asked “may i know which all sums are added to get 13010” and I gave you the answer!The cash flow from the the return phase in 20X5 is 60.Since this is in 2 years time, discount for 2 years at 9.2%.60 / (1.092^2) = 50.31Similarly in 3 years time, 589 / (1.092^3) = 452The differences are simply due to roundings.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)The topic ‘75 biplton’ is closed to new replies.