*** ACCA F9 December 2016 Exam was.. Instant Poll and comments ***

@caspian087 said:
I think it was 13 or 31%

Sales sens.= NPV/ contrubition

But it was mentioned sales volume so NPv/sales revenue

Or NPv/contribution

@beckyspace said:
Section C was like Merry xmas enjoy so not difficult.
but MCQ was like f***** it! I didn’t have a clue so guess my way through them.
Because I guessed them had plenty of time to memorised them as below:
1 A 11 A 21 A
2 B 12 B 22 B
3 D 13 C 23 B
4 C 14 C 24 A
5 C 15 D 25 B
6 C 16 D 26 A
7 D 17 D 27 D
8 A 18 C 28 C
9 C 19 D 29 C
10 c 20 A 30 D

I also did noticed MCQ 27 partly answered one of the section C question on two ways of incorporation risk in to investment appraisal.
The answer was probability and sensitivity analysis.
for the NPV I had a very huge figure like never before which made me think I had done something wrong but looking at the NPV values of the subsection b which was about PI I concluded i was probably right.

My Wacc was 10…. something.
the business and financial risk wasn’t quote sure what to write any one?</blockquote

Ya i realised about the sensitivty analysis as well picked 2points for q32 from the mcq ?

@samh88 said:
I thought I had done ok on section C until I looked on here!

Did anyone else leave the fixed costs out of the NPV question because it was just increasing capacity not an entirely new investment so fixed costs would have been incurred regardless of if the project was undertaken?

Please dont tell me ??

@samh88 said:
I thought I had done ok on section C until I looked on here!

Did anyone else leave the fixed costs out of the NPV question because it was just increasing capacity not an entirely new investment so fixed costs would have been incurred regardless of if the project was undertaken?

Please dont tell me ??

I wonder how marking will be for NPV…seems I shouldn’t have included fixed costs, should have included tax savings at the start of year. If tax was in arrears I think end of year 1 is fine but not sure, maybe end of year 2. Seems I added Npv incorrectly. If those are my only mistakes, I think I will get around 5 or 6 for the question.

@dreamersk said:
what was the answer to the MCQ about annual cost if you do not take the discount rate?

What were the options?

@madihakhan18 said:
What were the options?

Options were

6% and 9% approximately.

can you claim tax allowable depn at the beginning of the first year i.e time 0 when there are no profits?

@vikar said:
Hi guyes and girls today was f9 paper and my mcqs answers were that’s 1.D.2D.3c.4c.5.c.6B.7b.8b.9c.10A.11D.12B.13B.14D.15c.16b.17d.18a.19c.20b.21a.22.b.23b.24d.25d.26b.27c.28c.29a.30c.most of my mcqs was guest. Npv is positive 134 and tax benifit is also in arresrs as like payment and in wacc I ignore bank and give note about bank.The one is I select funded gap in dividend model I all three I selected.

@madihakhan18 said:
I think i got 9
It was tht formula of 100/100-d ^365/t i guess

That was for a 1.5% discount?

How did you calculate the operating cycle questions? What was the reduction? Do you remember the number and answer?

I also did not take into consideration fixed costs in q 32 and I used the tax -allowable depreciation starting with the second year. The optimal combination for investment I got to be ABCD with the highest NPV.

For business risk and financial risk you needed to write about how business risk is measured by operational gearing (contribution / PBIT I think) and that there’s always going to be business risk but it depends on the type of business etc. Financial risk is measured by financial gearing (debt/debt+equity) and I wrote about some of the theory’s – traditional theory and M&M etc. – although not sure if I went into too much detail.. can’t remember how many marks it was for but I’m confident I covered everything 🙂