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BPP kit Q 162 (NPV)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › BPP kit Q 162 (NPV)

  • This topic has 3 replies, 2 voices, and was last updated 7 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
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  • September 3, 2018 at 2:11 pm #470966
    Avatarrishabbohra98
    Participant
    • Topics: 112
    • Replies: 88
    • ☆☆☆

    Sir in your lectures you said that only if (current terms) is given then we have to inflate from first year. But in the 162 Q they have not mentioned if sales and V/C have inflated in current terms. But still in the answer they have inflated from 1st year onwards instead of 2nd year. Why?

    September 3, 2018 at 2:48 pm #470975
    Avatarrishabbohra98
    Participant
    • Topics: 112
    • Replies: 88
    • ☆☆☆

    I mean current price terms.

    September 3, 2018 at 5:01 pm #471030
    Avatarrishabbohra98
    Participant
    • Topics: 112
    • Replies: 88
    • ☆☆☆

    Sir could you please help me with this question

    September 3, 2018 at 5:09 pm #471033
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54846
    • ☆☆☆☆☆

    The note in the question specifically says that the the selling prices have not been inflated, and therefore they must be in current price terms. Especially given that the prices change in later years (before inflation) it would be silly for those prices to have been quoted in year 1 prices!

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