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Notes CH6_6.2 Baumol Model_Example2

Forums › ACCA Forums › ACCA FM Financial Management Forums › Notes CH6_6.2 Baumol Model_Example2

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  • February 16, 2018 at 5:14 am #437528
    Anonymous
    Inactive
    • Topics: 1
    • Replies: 0
    • ☆

    Answer to (a) why we added 150k with 1.5M to take an average while our forecast is only 1.5M and in another calculation, why only average on 150k to calculate interest earned.

    Thanks

    February 16, 2018 at 8:20 am #437564
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54472
    • ☆☆☆☆☆

    I do explain this in detail in my free lectures working through this example (if you are not watching the lectures then you really should not be using the notes because they are only lecture notes – in that case you really need to study from a Study Text).

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