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That was awful. Section c not too bad but still think I messed them up NPV was one of my 12 mark questions which was nice. The section A and B were horrific didn’t know any of them
I had the NPV section C as well. Got confused if development costs should be included . Was your NPV – or +?
Had the same issue for section A & B , too many theory questions with multiple answers per question 🙁
I was told if they have ready been spent then it is sunk costs and not to include them. Even the 1m absorbed costs in fixed costs shouldn’t have been included. I got a + NPV don’t know if it’s right though. I’m so annoyed studied so so much took all week off work to study and nothing really came up relevant to what I have been studying. Nothing on Islamic finance when I learnt all of the different terms
I understood that they have been already incurred them, so they should not benn included in NPV…
But I also lost in this question..
If the net CF is negative for the first year what tax payable should be? I indicated zero..Totally agree.
And even smth that I learned and practiced (again NPV) I completely forgot some things related to tax and working capital… Like just blank peace of paper into the headWhat was it with all the market hedging questions??? Defo no what I was expecting
Mine second section C question was to calculate gearing, interest cover and EPS. But they told “for both favourable and unfavourable cases”. But here were also 2 ways of investment, so I calculated for 4 cases ?? Rights issue Unf, Rights issue F. Loan notes unf, and loan notes F ?? hope at lease smth is correct ?
But I messed up with gearing because in last minute decided to change RE and in addition some formulas I used moved…
Oh, it is too emotional to take this ACCA
Section A was good and section C too – AgeAid which was a NFP with a lease or buy decision and then a WACC for the other Sect C Q. Lots of commentary / discussion marks available – CAPM & DVM, 3Es and VFM, why a lease v buying, and link between cost of finance and creditor hierarchy.
However – section B was brutal!!!! FX question & Working capital were horrible but the business valuation was ok. So overall I voted ok and am hopeful for a first time pass.
I had the same section C,
Did you get that AgeAid purchase PV was cheaper? I did but the the next question seemed to imply lease was cheaper
The exam was okay I didn’t feel completely lost at any pointPhew that was full on. So many choice questions in A where I just had to hedge my bets. Section B I had a right panic on. Section C the NPV I think I did well but not sure if tax was starting in period 1 or 2? I think the first year loss got a tax rebate as indicated to do that in the question.
My second C question was accounts receivable offer discount or factor. I had net costs for both with the discount cost huge so feel I might have been off on it by quite some way.
Barely any WACC or Capm etc, so odd to learn so so much stuff that doesn’t crop up then 8 marks on difference between real and money rate – I can’t think of how you can say enough to get to that level of marks – bananas!
Enjoying reading comments everyone
Yeah even i got that question. I literally did the whole bpp and kaplan but never came across a sum like this.
I think the NPV development cost is suppose to be a sunk cost so it will become an irrelevant cost so we do not take that. Fixed cost should be 6m-1m=5m
My 2nd qstn in section C was disaster. The first 12 marks required calculation of Gearing, interest cover EPS in 1 yr for both favorable and unfavorable where there was rights issue or loan note issue.
I don’t think I will get any mark on those 12 marks.Anyone with an idea on the section A sensitively analysis question. Sensitivity to savings options answer were for A around 20K, another around 13k, another around 2k and another around 4k
Then there was loan note conversion in sec A again option A while said conversion premium was around $500 other options I don’t remember.
That question was terrible for a last question in an exam. You have to think hard when the exam is almost time up. I don’t think I will get any mark on those 12 marks.
That is what I did year 1 would be for example x 1.04 , then 2nd year x1.04^2 and so on
Does anyone remember answer to the question that asked purchase power parity for 18 months loan payment in section B? I chose the first option.
I had the lease as slightly cheaper and the next q implied this was correct … it said other than NPV cost
The question related to finding the foreign currency payment in dollar using the purchasing power parity theory what the hell was this? I really wanted to understand what is this concept
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