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marking scheme of examiner

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › marking scheme of examiner

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.
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  • March 10, 2024 at 4:25 pm #702648
    quytuan
    Participant
    • Topics: 107
    • Replies: 46
    • ☆☆

    In march 2024 AFM exam, there is a problem requiring the calculation of NPV of cash flow X from year 11 to infinity, which increase at rate of 7% and at cost of capital of 12% to the net present value (NPV). I want to ask if a make a mistake, for example, calculate NPV in abbrivated form (due to time pressure I must have to write in abbrivated form) as: NPV= X*(1+7%)*1.12^(-5)/(12%-7%) instead of NPV =X*(1+7%)*1.12^(-11)/(12%-7%), can I have mark for the part of calculation of PV of cash flow to annuity discounted to year 11 as: X*(1+7%)/(12%-7%)?

    Thanks!

    March 11, 2024 at 6:56 am #702720
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54831
    • ☆☆☆☆☆

    Probably. The marking scheme is only a suggested scheme – the markers are more looking for whether or not you show an understanding of the topics.

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