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Inv appraisal NPV calculation- Decimal places to consider

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Inv appraisal NPV calculation- Decimal places to consider

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
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  • August 12, 2021 at 10:33 pm #631387
    sonalidb
    Member
    • Topics: 10
    • Replies: 8
    • ☆

    Hello John!
    For eg when we calculate inflated sales price or variable cost how many decimal points do we take into consideration in the answers I have seen they round it up to the nearest whole number or it varies from 1-3 points, is there a specific decimal point we can take as a rule of thumb for convenience ? Because when I round it to the whole numbers they will consider it to 3 decimal points in the solution and vice versa leading to a big difference in answer because all the values change, I don’t think the rounding up should matter but would love to hear it from you!
    Thanks

    August 13, 2021 at 9:00 am #631418
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54687
    • ☆☆☆☆☆

    Section A and B questions will make it clear what rounding is required.

    In Section C questions it really doesn’t matter. Usually we round to the nearest thousand, but that is not a rule. The marker is not marking your final answer, but it marking the workings 🙂

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