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Dear Sir.,
I have a doubt about this old exam question.I do not understand why in the expected value of the new project we apply the % 25% and 75% to all years when the text says only the first year. I am a bit confused.
Can you explain why we are doing this calculation to obtain the total expected value?.
I had applied 25% and 75% only in the first yearthanks a lot
Please tell me which exam it came from. I have past exam questions going back to 2001 but I cannot find one called Avern !
Oh sorry my mistake with the name. it is December 14 and it should be Nahara CO and Fugae CO
If you go to our main Paper AFM page ( https://opentuition.com/acca/afm ) and scroll down to “Revision Kit Live’ and click on the link, then you will find lectures working through the whole of this question. The lectures should then answer your question 🙂
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