Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Jun 2010 Q1 The Seal Island Nuclear Power Co
- This topic has 7 replies, 2 voices, and was last updated 8 years ago by
John Moffat.
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- May 13, 2016 at 8:47 am #314884
Dear John,
In part a, the answer of estimating NPV it was used combined of growth and annuity in a formula. I have tried to calculate separately but I could not get the same answer. Could
you please kindly help me to break down into formula.Thank you very much!
May 13, 2016 at 9:38 am #314905I don’t really understand what you are asking, and why you wanted to calculate separately.
The formula is given in the question and you are expected therefore to use it!!
It is actually easy to derive. It is the normal annuity formula that is given at the top of the annuity tables in the exam, using the real discount rate which is given by
1 + r = (1 + i) / (1 + g)May 13, 2016 at 4:54 pm #314962Thank you John, i m sorry because my lecture’notes do not put this formular on the question part. So i was confused. I saw the this question on acca webstie and the formula was given.
May 13, 2016 at 5:30 pm #314974You are welcome, and no problem 🙂
I assume that you are OK with it now?
May 13, 2016 at 5:33 pm #314975It s very kind of you. I also understand it very well. Thank you so much!
May 13, 2016 at 5:35 pm #314977No problem – have a good weekend 🙂
May 13, 2016 at 6:36 pm #314983Thank you and same to you!
May 13, 2016 at 6:40 pm #314985🙂
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