Laceto 6/01Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Laceto 6/01This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts September 2, 2016 at 8:28 pm #337141 AnonymousInactiveTopics: 43Replies: 65☆☆Hi John,The answer in BPP for this question uses the present value of 19 to determine the terminal value shouldn’t we use the cashflow of 32?Thanks you September 3, 2016 at 7:41 am #337223 John MoffatKeymasterTopics: 57Replies: 54338☆☆☆☆☆By all means use 32 instead of 19, but because the inflating flow starts 4 years late (at time 5 instead of time 1) you would then have to discount the answer from the formula by 4 years to get a present value.This would give exactly the same result 🙂AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In