*** ACCA Paper AFM September 2019 Exam was.. Instant Poll and comments ***

Do you remember of how many marks was the last part of Q1 on inherent risk.
Forgot to answer on this.

@amirulez said:
Honestly, it is not that hard, but i can’t manage to complete it in time. Got blank on third question calculation part due to have one hour left, and still need to write all the writing part. Section 1 took me 2 hour plus.

I get 25.462m hedging amount using forward contract, money market hedge is lesser but marginal. Project Alpha NPV is around 5,562 if i remember correctly. And the duration is 2.6years. Forgot the amount for APV.

The dividend capacity i get for question 2 is 80M.

Got very similar throughout, remember the money market being marginally worse in my answer. And Alpha’s NPV being about what you said. I got 3.02 years for its duration, however, I recommended Beta in the end I don’t know about you guys? My logic being that both projects NPV weren’t that far off each other with respect for the amount of money invested, but as I got the 3.02-year duration compared to Beta’s 2.42 years (?) that Beta was lower risk for a similar return. Can’t recall what I got for dividend capacity

Who else considered the fact that the project was to start in 6 months, and we were to present value it today?. that kinda affected my initial outlay

In the 1st question it was said tat the project wud start in 6 months time….so will the npv calculations be any different from how it normally is?