- This topic has 3 replies, 2 voices, and was last updated 7 years ago by
.
- Posts
John,
I got through all of the question, but got stuck in a part of the explanation in the answer that deals with part (d). It calculates the RI after the investment – > 1332 and proceeds to say that the RI is higher with it and should proceed with the investment, when without it it was 1412. Am I missing something? Wouldn’t it be lower and therefore should the investment should not take place
Thanks,
RachelYou must be using an old edition of the Revision Kit, because it is not question 280 in the current edition. Maybe there is an error in the old edition, but the current edition answer says:
“Based on the above calculation, it is clear that the RI is lower with the investment…….the company should not proceed with the investment.”
I am very surprised if your BPP answer says different, because this was a past exam question and BPP simply copy the examiners answer.
(I hope your edition is not too old, because of the change in the format of the exam and style of questions)
Hey John,
Mine should be the edition that covers up till June 2017. I’m assuming that’s ok? Thanks for the clarification though, it was quite confusing.
Rachel
- The topic ‘BPP Quest. 280. Biscuits and Cakes’ is closed to new replies.