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June 2012 Tisa Co

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › June 2012 Tisa Co

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
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  • November 26, 2018 at 10:54 pm #486052
    davidlemonhhl
    Member
    • Topics: 7
    • Replies: 12
    • ☆

    Hello sir,

    For part b of this question, both of the process Omega and Zeta have higher IRR and MIRR than cost of capital of 13%. So both of them should be accepted.

    So why the answer says ‘process Zeta should be adopted as a result…’?

    Thanks.

    November 27, 2018 at 8:35 am #486108
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54830
    • ☆☆☆☆☆

    But they cannot accept them both – the first paragraph of the question makes it clear that they have to choose one or the other (or, obviously, neither of them 🙂 )

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