Forums › ACCA Forums › ACCA FM Financial Management Forums › *** March 2024 ACCA FM exam – Instant Poll and comments ***
- This topic has 41 replies, 23 voices, and was last updated 7 months ago by Tsuyoshi10.
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- March 8, 2024 at 6:52 am #702366March 8, 2024 at 4:05 pm #702413
Hi
Did anyone have question C about divisible projects ! In part B you had to do an NPV for Investment Z, the NPV was negative though as there were no cash flows coming in just a reduction in electricity consumption ! Not sure if I quote got this question ?March 8, 2024 at 4:19 pm #702417Hi,
I did get the same section C, from my understanding the ‘cash flow’ was the 27% saving from electrical cost.
I could be completely wrongMarch 8, 2024 at 4:52 pm #702425Yup – cash flow was the 27% electrical cost saving, less the 25% taxation. Think I got somewhere around $0.65m as the NPV.
March 8, 2024 at 4:54 pm #702426That was such a hard exam I thought, even section A and B I found tricky! I think it’s definitely going to be a resit for me.
March 8, 2024 at 5:05 pm #702427Just finished the FM exam got ratio question and Replacement NPV Question in section C
For the ratio question do you add the new Operating profit of 64.8 to the existing profit of 177 for the calculations? Same for the 360m investment?
March 8, 2024 at 5:06 pm #702428Yes, had the same. Npv divisible projects, 27% are cash flow savings minus tax. There was a question about risk & uncertainty, sensitivity analysis.
March 8, 2024 at 5:45 pm #702436Hi Usamaarshad1
I added them for option one , wasn’t sure for option 2March 8, 2024 at 5:53 pm #702438Such a hard exam! The difficult ratios with different investments, sharia law financing theory, the divisible projects, part B had some tricky questions as well ??
March 8, 2024 at 6:16 pm #702443I got that at first and then realised in the scenario it said that investment was required at the start of second year (so end of year one not in year 0 as it usually ihappens). That changed npv to 2 something for me.
March 8, 2024 at 6:18 pm #702444I did
March 8, 2024 at 7:07 pm #702445Arrr yes I understand it was a saving but it was not cash coming in as such, it was still cash that we had to pay for electric but it was at a reduced rate !! Arrrr I think I will be doing this exam again . I found section C very tricky
March 8, 2024 at 7:29 pm #702446Thank you, yeh I’m not sure if I did that last ratio question right or not as the information given was for current year however the new project was for next year but the options were for expansion so surely the expansion projects are on top of current figures
March 8, 2024 at 7:30 pm #702447Can someone recommend other forums as well where there’s discussion about the march FM exam?
March 8, 2024 at 7:43 pm #702449I agree with you Lisa, don’t think examiner was very clear there as of what they have expected us to do. It didn’t however state that electricity was only for this project alone and in what form savings would be received. I therefore assumed electricity was a cost that was incurred by entire company not attributable to this project alone. It did stated within scenario that npv was predicted to be zero based on assumptions that investment would be offset by the savings in electricity. Perhaps received in form of cash grant on which you pay tax? Doesn’t charge fact the exam was very difficult and scenarios had a lot of distractions and some things weren’t just obvious. I found section a and b very difficult and who knows maybe you nailed the multiple-choice questions and still grant yourself a pass, fingers crossed! : )
March 9, 2024 at 2:56 am #702461I had the same NPV question, it was quite tricky, I had a positive NOV of 4m, I just included the 27% as an inflow and the tax as an outflow. But I think I did the inflation wrong and the asset timing(placed it in year 0 when it should have been t1.
Also had the divisible projects, all I remeber is we needed 13m apportioned but one of the projects had 14m initial investment and NPV of 2.8M and this was a minus 200k on that specific project,so portioned against it. It should have had a total npv of 18.2m or 17.2m for divisible.
Did anyone else get this?March 9, 2024 at 4:12 am #702467Did anyone has questions for replacement and EOQ in part C?
March 9, 2024 at 7:35 am #702476I actually have gone mind blank.
The question I got had the 4 years of cashflow for NPV, no tax, IRR, Payback, Roce and Talk about the investment appraisal.Did anyone get this?
March 9, 2024 at 7:42 am #702477Junaid98 I had this question with divisible and none divisible projects and had similar answers but I’ve changed my answers on this last minute when I realised it said in scenario that project Z was mandatory due to government requirements to reduce co2 and 25m must have been used from the total 70m capital available so although the estimated npv by the company given in the scenario was zero I still included this in my calculation of maximum npv that could be achieved, basically this reduced my available capital by 25m. I made my assumption to clarify why I did that but not sure if that’s correct. And yes you right one project must have been apportioned the spent was 14 but only fraction was available.
March 9, 2024 at 12:13 pm #702512Hi NhungTruong yes I had those 2 questions – can I ask what you did for them?
March 9, 2024 at 12:34 pm #702515I got around NPV 668K if i recall.
March 9, 2024 at 1:50 pm #702518Hello, which part do you replace in question 1? Is it benefit from obtaining discount in question 2?
March 9, 2024 at 4:59 pm #702531I got this question. How did you find it?
March 9, 2024 at 6:58 pm #702534Hi Bella, I had the same question with various investment appraisals, and talk about usefulness of these investments used by the company. I q31 I had horrible factoring and settlement discount.
March 9, 2024 at 7:18 pm #702536Hi, I had EAQ, Right issue or loan note to be issue(financing) question in Section C!
Had hedging one in section b £-$ and material purchases in Euro so much confusion, I just guessed most of the section B question.
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