• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Expected values question on npv

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Expected values question on npv

  • This topic has 3 replies, 2 voices, and was last updated 9 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • October 4, 2015 at 3:59 pm #274929
    drice99
    Member
    • Topics: 52
    • Replies: 78
    • ☆☆

    Hi John, page 61 the question states that the fixed overheads ‘increase by 140000 per year’ should it read ‘are 140000 per year’? The solution has 140000 each year as the fixed overheads. Maybe I am reading it /understanding it incorrectly?

    Hugh

    October 4, 2015 at 5:51 pm #274942
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    Ahhh…..this wording caused a big problem for people in a few real exam questions.

    Think of it this way:

    Suppose you are currently paid 10,000 a year.
    Suppose your manager calls you in and says that your salary will be increased by 1,000 per year.
    Surely you will then expect to be paid 11,000 every year?
    (You may hope that in future it will be increased again, but you won’t assume that it will be 11,000 next year, 12,000 the year after, then 13,000, and so on.)

    If the overheads were going to increase by 140,000 every year, then the question would say ‘the fixed overheads increase by 140,000 every year’.

    The last time this wording appeared in the real exam, the examiner did say in his comments that people who assumed it increased every year would still get full marks. So he obviously realised afterwards that the English had caused a problem. Because of that I am sure he will make it much more clear next time he sets a similar questions.

    October 4, 2015 at 6:50 pm #274946
    drice99
    Member
    • Topics: 52
    • Replies: 78
    • ☆☆

    Phew cheers 🙂

    October 5, 2015 at 7:29 am #274982
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • adityachaudhry on Discounted cash flow techniques (part 3) – ACCA (AFM) lectures
  • nuripamir on ACCA Administrative Review
  • Jherddie on CIMA E3 Chapter 8 Test
  • umangkumbhat on What is Assurance? – ACCA Audit and Assurance (AA)
  • ahmadhoney on How to register with ACCA?

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in