• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Save 20% on ACCA & CIMA Books

Interactive BPP books for June 2026 exams, recommended by OpenTuition.
Get discount code >>

Neptune

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Neptune

  • This topic has 3 replies, 2 voices, and was last updated 10 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • May 31, 2015 at 9:15 pm #251137
    AvatarKeshini
    Member
    • Topics: 1
    • Replies: 4
    • ☆

    Hi John

    In question Neptune they use ungeared cost of equity to discount cash flows in NPV. Why is it not the WACC?

    Thanks
    Keshini

    June 1, 2015 at 8:12 am #251195
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    Because the question asks for the APV.

    For APV you calculate the NPV as though it were all equity financed (i.e. using the ungeared cost of equity) and then add the tax benefit on the debt interest.

    June 1, 2015 at 9:22 am #251253
    AvatarKeshini
    Member
    • Topics: 1
    • Replies: 4
    • ☆

    Many thanks for your reply

    June 1, 2015 at 12:11 pm #251295
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE Exams – Instant Poll

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • TEDI on IAS 16 Property, plant and equipment – Initial Recognition – CIMA F1 Financial Reporting
  • ChanNV on Framework – measurement – ACCA Financial Reporting (FR)
  • ChanNV on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • Konstantinos43 on Financial Performance Measurement – Liquidity Measures – ACCA Management Accounting (MA)
  • Hirak.5 on ACCA TX-UK FA2025 Chapter 3 Property Income and Investments – Individuals

Copyright © 2026 · Contact · Advertising · OpenLicense · About · Sitemap · Privacy Policy · Cookie settings · Comments · Log in