part of question 3a is to highlight the potential application of disruptive technologies which may be considered by HiLite.
If rent a room has hotel rooms as well as apartment rentals, homestays, hostels, how come the solution that the ACCA provides does not mention that HiLite could integrate into Rent a room? It could offer its hotel rooms on their platform?
Ask the Tutor ACCA SBL
December 2018
In addition, the model solution in 1b in evaluating the acquisition does not reflect on the fact that there is no mention of tax in the financial evaluation? They seem to mention sensitivity analysis but correct me if I'm wrong, to assess the sensitivity of revenue, we take NPV over the after tax present value of future revenues? So NPV/pv of after tax revenues?
Q1: Yes it could, and it would be fine to mention that, but presumably Rent-a-Room would want a substantial commission in return. It could be a potential short-cut to make use of the new technologies
Q2: Yes, it would be fine to mention tax. I can see no instruction in the question to ignore tax cash flows.
Sign in to reply to this topic.
