*** ACCA P3 December 2016 Exam was.. Instant Poll and comments ***

Hi Matchamulonde,

Q1 allocation marks:
1.18 marks
2i. 9 marks-about benefits;
2ii. 6 marks – PID;
2iii. 5 marks – cost/benefits analysis;
2iv. 8 marks – management accountant;
Plus 4 proffesional marks.

@tlobo said:
Anyone worked out the npv as the first two lines of benefits were observable and measurable so ended with negative npv so did not approve project. Did anyone get same

I think you were just supposed to do the appraisal based on the table, ignoring the validity of the figures.
You then tore the figures to shreds in the next part of the question.

@aimeer85 said:
I think you were just supposed to do the appraisal based on the table, ignoring the validity of the figures.
You then tore the figures to shreds in the next part of the question.

I did this as well but it didn’t make sense to me. They ask you to evaluate the project with benefits included in it that you knew shouldn’t be included and then you had to explain after why certain benefits shouldn’t be included. If I was really writing a memo or report on the project I’d explain why certain benefits shouldn’t be included first before then removing them. But the paper didn’t ask you to do that.

@david0011 said:
I think what’s this is a heartland business iit was benefiting from MKI’s help and profitability was increasing. If it was value trap MKI would be destroying value.

Profitability may have been increasing but the industry revenue was increasing in general so I would guess that was the cause of it. The way I thought of it was that a company producing and selling physical hard copy instructional books would not understand the mobile apps industry. Although they could help the company (large benefits) they wouldn’t understand the industry (low feel). Value trap doesn’t necessarily mean they destroy value, it can mean they just don’t help them as much as they might have first thought.

The example for value trap given in the technical article was a large pharmaceuticals company trying to help a small video games company with marketing. Although they’d have a lot of knowledge of marketing (large benefits) they wouldn’t know how to market video games (low feel).

NPV was positive 494 or 474 cant remember , I am sure you can forgive me for forgetting! When the discount factors were applied to both benefits and costs, the benefits were more, hence viable and doable project!

@ddmoo said:

38 marks for Pestel, Porters 5 forces and SA (suitability and Acceptability) of SAF in Q1. And then in Q2 you’ve got 18 marks for Balogun and Hope Hailey! That’s 56 EASY marks!
.

How did you use porter and pestel?

Hallo,

I am writing about Q2 ii. I wrote only explanations about 3Vs. Do you think the examiner would give marks about it?

Thanks!

Question one was very long and tried to manage time noticed it was almost 2hrs and i was still on question one.I left the remain question then rushed to section B .Time was moving too fast I only attempted the 15marks question just to maximize on remaining time .

I think 85% paper was easy , the main thing was unexpected question of npv and irr which make it hard, and i waste more time for this area due to which 10% paper left bcz of time shortage.