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AFM/BPP Rev Kit, Q No 45 Daikon

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  • June 21, 2020 at 3:01 pm
    AFM/BPP Rev Kit, Q No 45 Daikon 2
    gbay
    Participant

    Dear John,

    Requirements of the question Daikon are straighforward, and I solved it without problem with only one difference. I calculated net effective interest rate (EIR) and then net cost. However, Bpp answer includes calculation of the difference between net EIR and current borrowing rate (4.3%).
    Could you please explain why in this question it is required to calculate changes in additional cost?

    Regards

    June 22, 2020 at 9:08 am
    AFM/BPP Rev Kit, Q No 45 Daikon 3
    John Moffat
    Keymaster

    It is because the question asks for a response to the CEO’s request in the first paragraph of the question. She asks for the extra cost 馃檪

    June 22, 2020 at 3:13 pm
    AFM/BPP Rev Kit, Q No 45 Daikon 2
    gbay
    Participant

    Noted with thanks

    June 23, 2020 at 7:57 am
    AFM/BPP Rev Kit, Q No 45 Daikon 3
    John Moffat
    Keymaster

    You are welcome 馃檪

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