• 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

June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

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

]JUNE 2011 MMC

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › ]JUNE 2011 MMC

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • February 19, 2024 at 1:23 pm #700675
    siuchunlok1994
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    Hello.

    I studied the question and think that it should be under the type of real option to delay.

    However, I didnt quite get it for the 35M costs.

    For the NPV calculated that is no option to delay, the 35M cost is assumed to be spend in Year 2 and discounted for 2 years.

    For the NPV calcuated for option to delay, the 35M seems also considered to be spent it Year 2.

    So it didnt lead to the benefits of the delayed option??

    https://www.accaglobal.com/gb/en/student/exam-support-resources/professional-exams-study-resources/p4/technical-articles/investment-appraisal.html

    Example 1: Delaying the decision to undertake a project
    A company is considering bidding for the exclusive rights to undertake a project, which will initially cost $35m.

    After I read the previous link article, i had the above confusion. The above example for BSOP they had the Pa and Pe discounted for 2 years more that the one with no real option

    February 20, 2024 at 7:41 am #700708
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54687
    • ☆☆☆☆☆

    In MMC, Pe is 35M. Although this is paid in 2 years time, the multiplying of it in the formula by the term with the ‘e’ in it is effectively discounting it for 2 years, as I explain in my free lectures. So it is being discounted and doesn’t need discounting again 🙂

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 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

  • shravanm on ACCA AAA Employability and Technology Skills
  • MitaP on Presentation of Financial Statements (IAS 1) – ACCA Strategic Business Reporting (SBR) lectures
  • John Moffat on Activity Based Costing part 1 – ACCA Performance Management (PM)
  • Shabi on Activity Based Costing part 1 – ACCA Performance Management (PM)
  • Ark1 on Variance Analysis (part 4) – ACCA Management Accounting (MA)

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