FM*** F9 June 2016 Exam was.. Instant Poll and comments ***

@Gia, I also tried to find year by year, then as I could not find an appropriate answer I just added both figures then discounted. Like, if there are 2% for the 1st year, and 3% for the second, I just discounted the figure with 1,05 . I think it was wrong, athough there was an exact answer

I found the forward rate for the current year and assumed it to be the spot rate for the first year and calculated the forward rate for the second year from that.

Anyone remember there MQC? I only remember the letters I put down not answers.

Q5 NPV- My approach was: First the question states that for each year there are expected probabilities relating to the 3 types of the product. So for each year I used the percentage given (expected values) to calculate the type of goods and then calcutated the sales and conversion costs that relate to that specific good. The Fixed cost was easy, I just used the range of sales unit and used the relevant fixed costs. NPV in part a was negative so I would reject the project. NPV into the future with sales being at 450 units which was the same as year 4. In this case all I did was take the same Cash flow after tax as year 4 and just used rhe year 5 Discount factor which made the NPV positive. Therefore accept the project.

It was going well until I got to Q3, which I had left to last. Then I had a major mind-blank out of nowhere and completely forgot how to do a money-market hedge and about the types of exchange rate risks. So now my best hope is to get 50 marks out of 90. I don't get it, I revised it so much, but then just completely flaked out on the question!

Exam question paper is out, but I find a few questions seems bit different: https://www.accaglobal.com/content/dam/ACCA_Global/Students/fun/f9/Exam%20docs/j16_hybrid_f9_q.pdf

No depreciation should be in NPV calculation, just minus initial investments, that is why NPV >0

Hi, I too have straggled with this paper for sometime but hope to clear this time round.

@vipulv said: It was irredable debt 8 per cent you had to use. Not repayable so you do not tax 8 per cent by .75 that is what i seen every where. So i did 16000/ 438 000 sumthing divide by 8% for wacc bit.

@tayyabom said: hi my answers were more or less same, though i didn't choose market segmentation as reason for invert yield curve, i chose because short term interest rates are higher than long term rates, something like that.

wasnt the answer government raising short term interest rates?