Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › opentuition F2 mock exam section B
- This topic has 5 replies, 2 voices, and was last updated 6 years ago by John Moffat.
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- May 28, 2017 at 10:28 pm #388662
Hello sir,
Im not able to calculate the first three questions of the section B from the opentuition mock exam F2 …. sir can you please explain in detail those three question … Section B question number 1 ( a,b and c )
Thank you
May 29, 2017 at 8:19 am #388716Have you watched the free lectures on investment appraisal?
If you have then you will have to be more specific as to what your problem is with these three questions (because you should find them a pretty simple application of what I go through in the lectures).
For parts (a) and (c), the cash flows are an initial outflow of 300,000, followed by a new inflow of 120,000 – 30,000 = 90,000 a year for 5 years, and then an inflow of 20,000 in 5 years time.
For part (b), the average profit per year will be 90,000 less the depreciation of 56,000 per year. The average investment is (300,000 + 20,000) / 2May 29, 2017 at 10:35 pm #388875Thanks alot for the answer sir… But in part b how did you calculate the depriciation of 56000 ??
May 30, 2017 at 9:21 am #388929(300,000 – 20,000) / 5 = 56,000 🙂
June 4, 2017 at 9:34 pm #390353Thank you sir
June 5, 2017 at 7:52 am #390428You are welcome 🙂
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