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Re? Q210 – Kevin Dutton
The question gives the required return of 30%, how come to check with the present value table in the real exam?the table provides maximum at 20% only?
So ricky dicky lous
I do not have the Kaplan Kit (only the BPP Revision Kit).
Assuming that the question does actually require the NPV, then you need to calculate the discount factor yourself using the formula that is provided on the tables of discount factors (you should remember how to do this from Paper MA (was F2) but if not then check the Paper MA lecture on investment appraisal.
Obviously if it is a Section C question then there is no problem anyway because you can use the NPV function on the spreadsheet for any rate of interest.
Having said that, it would be extremely unusual for the Paper FM examiner to set any question that actually required you to discount at a rate that is not in the tables.