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I think I’ll pass. Cash flow sum was good. Did y’all get a positive NPV while solving with corporate taxation buy option in the 32nd sum? The lease was a negative NPV though. Fair enough.
There was a lot of trick guestion. onlu cash flow was easy i think. The was guestion with forward rate agreement with two rates it was hard
For me it was ok
Anyone got an NPV question? I got a negative amount.
The second question in section c was a debt/equity question?i dont know i have no time to make it correctly. because have i mistake in cash flow guestion and it take me a lot of time to recalculate
Disaster!
One hell of a paper it was. Section B & C were so damn hard. Never imagined it will go like this.
Hoping for a pass this time.@sanjanapaul1234 said:
I think I’ll pass. Cash flow sum was good. Did y’all get a positive NPV while solving with corporate taxation buy option in the 32nd sum? The lease was a negative NPV though. Fair enough.what do u mean by lease I had a uestion in part C about NPV and a machine of 1m but there was nothing mentioned about leasing it was just mentioned about buying
The exam was so easy that it had you racking your brain. ACCA really got us. smh
@dipatil said:
what do u mean by lease I had a uestion in part C about NPV and a machine of 1m but there was nothing mentioned about leasing it was just mentioned about buyingI think I got this question! Was your NPV negative??
I had a ques on NPV with operating profit given..I think we had to add back depreciation..
Investment was 100M and scrap value 50M
Working capital based on 15% of operating profit
Tax was paid in arrears Tax rate was 20%
TAD based on 25% reducing balance
I got -ve NPV@mosesdawodu said:
Why was that so hard?I really cant understand it, I never had any of the mock exams with such a challenging Section A, and I did all the papers I could find….Like seriously most multiple choice questions were absolutely ridiculous in terms of difficulty…
Section C
EAC
Cost of the Asset $860 000
scrap $60 000Life of Asset 5 Years
Bank Loan with 8%
Buy
Lease £160’000 per year for 5 years
Tax 25% in arrears
depreciation was on a straight line
what answers did you get???
and the second question was based on cashflow statement
i got a positive balance of $344’000 end of sep???
The questions were around:
Cash flow forecast,
Reasons for holding cash,
Improving cash management
Lease and buy (Tax and without tax)
IRR as an investment appraisal method
Risk adjusted discount rateI expected questions on WACC, NPV, Business valuation, Capital structure but alas… Had to restrategize
EAC
Cost of the Asset $860 000
scrap $60 000Life of Asset 5 Years
Bank Loan with 8%
Buy
Lease £160’000 per year for 5 years
Tax 25% in arrears
depreciation was on a straight line
can any one help with the depreciation calculation????????????????
and the second question was based on cashflow statement
i got a positive balance of $344’000 end of sep???
I had the question on lease and buy – I got negative answers for both -but lease was less than buy so I said lease is cheaper option. Also I think I messed up the buy because I deducted interest from the loan payment (which I think is wrong). I did add back tax relief. Please advise. I found the paper extremely tough specially multiple choice questions and foreign exchanfe
Yes lease was cheaper in both the options. There were only 3 items to include in npv which was the TAD relief, residual value n investment cost at year 0. The rate you had to use was the IRR post tax given in the qn. While calculating Npv without tax effect you had to remove tax from that IRR. The interest rate given was only used for calculating lease (post tax cost of borrowing)
Glad to see others got a negative NPV for the question in section C, i feel a little better about knowing that i though i had messed up somewhere. I had the exam with the debt/equity question in section c as well. Generally though it was a horrible paper a lot of tricky questions and loads where you had to write your own answer in the multiple choice section. Was hoping for a WACC question but didn’t even get a 2 mark one
@sarah1905 said:
Glad to see others got a negative NPV for the question in section C, i feel a little better about knowing that i though i had messed up somewhere. I had the exam with the debt/equity question in section c as well. Generally though it was a horrible paper a lot of tricky questions and loads where you had to write your own answer in the multiple choice section. Was hoping for a WACC question but didn’t even get a 2 mark oneIt seems you totally had a different paper because we had nothing about wacc n the normal Npv qn in today’s paper
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