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ARR

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › ARR

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
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  • October 10, 2016 at 7:40 pm #342918
    fazeel93
    Member
    • Topics: 71
    • Replies: 49
    • ☆☆

    why in the ARR formula initial investment + scrap+ working capital is divided by 2 and not 3 when they are 3 things?

    October 11, 2016 at 1:49 am #342948
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    I have no idea what you mean. The initial investment is never divided by anything!!!

    The average investment is the investment at the start plus the investment at the end, divided by 2 to get the average.

    I do suggest that you watch my free lectures – they are a complete course for Paper F9 and cover everything needed to be able to pass Paper F9 well.

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