Hi, somebody knows who was calculated amount of property in qwerstion 1 = 8 915 309 ?
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AFMDec 2008 Q1
Per the question,
Recovery value of the property
= (MV @ 31/12/14) - (repair cost @ 31/12/14)
=(value at 31/12/09 X rise in property value in nominal terms*) - (cost @ 31/12/08 X inflation)
= (6.2m X 1.107^5) - (1.2m X 1.025^6)
= 8.9153m
*use the fishcher formula thingy to convert from real (8% given in question) to nominal
Recovery value of the property
= (MV @ 31/12/14) - (repair cost @ 31/12/14)
=(value at 31/12/09 X rise in property value in nominal terms*) - (cost @ 31/12/08 X inflation)
= (6.2m X 1.107^5) - (1.2m X 1.025^6)
= 8.9153m
*use the fishcher formula thingy to convert from real (8% given in question) to nominal
Thank you very much
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