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Hi
sir
Itook my exam yesterday and i fail and there was a question on the cash budget showing three months sales and three months trade receiveables and it was in section b and dey asked for 18 days credit term and paid in next month and i really got confused in that question
also there was a question of net present value showing £500 per month cash inflows and end of each year £200 cash outflows and 10 % pa for ten years. whats the net present value.
is it possible to have some similar type of examples for understanding of the questions.
i really dont know where i am felling wrong in my exams could u please help me..
i will be really thankful.With regard to cash budgets, see my answer to the other question that you posted. (If they pay in the next month then the cash is the month after).
With regard to the NPV question, I do not understand why you had a problem. The net cash flow is $300 a year for 10 years. So it is an annuity for 10 years and you use the 10 year annuity factor at 10%. This is all explained in full in my lectures. There are similar questions in our practice tests and in the mock exam. And there will be lots of similar questions in your Revision Kit!
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