• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

ACCA December 2022 Exam results:
* Pass rates * Comments * Instant Poll * Competition *

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Blipton International

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Blipton International

  • This topic has 9 replies, 4 voices, and was last updated 6 years ago by John Moffat.
Viewing 10 posts - 1 through 10 (of 10 total)
  • Author
    Posts
  • November 29, 2015 at 10:28 pm #286242
    dennis98
    Member
    • Topics: 34
    • Replies: 42
    • ☆☆

    Dear John

    It says that property values rise in real terms by 8% but is property not also subject to inflation at 2.5% aswell as this?

    November 30, 2015 at 7:28 am #286300
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51532
    • ☆☆☆☆☆

    No.

    By saying that property values rise by 8% it is meaning that the inflation applying to property is 8% (and is higher than the general inflation rate of 2.5%).
    Everything else will inflate at 2.5%, but property is expected to inflate at a higher rate of 8%.

    November 30, 2015 at 11:08 pm #286577
    dennis98
    Member
    • Topics: 34
    • Replies: 42
    • ☆☆

    In general doesn’t “in real terms” mean “without the effect of inflation” ?

    December 1, 2015 at 6:46 am #286616
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51532
    • ☆☆☆☆☆

    Yes it does. But although the general rate of inflation is 2.5% it does not mean everything inflates at the same rate. In this question you are told that property inflates at 8% (not 2.5%).

    December 1, 2015 at 11:36 pm #286846
    dennis98
    Member
    • Topics: 34
    • Replies: 42
    • ☆☆

    thanks again John

    December 2, 2015 at 7:40 am #286888
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51532
    • ☆☆☆☆☆

    You are welcome 🙂

    May 23, 2016 at 5:20 am #316506
    anwaar92
    Member
    • Topics: 14
    • Replies: 16
    • ☆

    Hello sir, hope you r well.

    Regarding this question when calculating the MIRR,the pv of the return phase in the year 20X9 is 9731 in the bpp revision kit. I failed to understand hw this figure is arrived at. Kindly elaborate.

    Thanks

    May 23, 2016 at 6:34 am #316521
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51532
    • ☆☆☆☆☆

    It is a mistake – they should have used 8719.61 (from the earlier workings).

    What happened is that the examiners own answer to the question had a mistake in it (to do with the terminal value of the hotel). So BPP corrected his answer in the Revision Kit, but managed to then make the mistake of putting 9731 instead of 8720 🙂

    May 24, 2016 at 9:39 pm #316910
    sogan0
    Member
    • Topics: 7
    • Replies: 22
    • ☆

    Hi Sir

    Return Phase : how do we arrive to the Nominal cashflows 20.5 = 54.63

    May 25, 2016 at 6:53 am #316940
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51532
    • ☆☆☆☆☆

    The real cash flow (i.e. without inflation) in 20X5 is 52.

    The nominal (actual) cash flow is the real flow inflated at 2.5% for 2 years.
    52 x 1.025^2 = 54.63

  • Author
    Posts
Viewing 10 posts - 1 through 10 (of 10 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • John Moffat on Capital asset pricing model (part b) – ACCA Financial Management (FM)
  • John Moffat on Capital asset pricing model (part b) – ACCA Financial Management (FM)
  • palbu on Basic group structures – Impairment – ACCA (SBR) lectures
  • AkilaShaikh on Capital asset pricing model (part b) – ACCA Financial Management (FM)
  • AkilaShaikh on Capital asset pricing model (part b) – ACCA Financial Management (FM)

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy