*** P3 June 2016 Exam was.. Instant Poll and comments ***

I did Q3.
a. 4 stages to software solution selection.
However, position of each stage was not correct?
I rearranged: 1. Define requirement. 2. Invitation supplier 3. Evaluation COTS. 4. Implementation.
Anyone also?
This question was so confused :((
b. POPIT model.- New topic.

avatar
lakshmana iyer krishnan

Participant

Fantastic memory. You will score very high.
Are you sure the payable was 24 days, on the basis of cost of sale. I though they were paying late and hence if you take industry standard 30 the net working capital will be 589K less 134K.
For the first time we got the first question half solved and rest only we have to complete. Much easier than applying for the mobile license where similar probability and expected values were tested with a twist that you will get back 1 mil if current operators loses license – 2Tel. Overall a easy paper, only POPIT concept was unexpected.

@tashkent said:

(c) Didn’t calculate gearing as couldn’t find info on borrowings. I thought that as the entity is private no loans in the past. Receivables turnover was around 20-22 days. Payables turnover as the above. Conclusion was loan + better management of payables + leasing.

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There was non-current liabilities. I’ve assumed, that thats all a debt.

this papeer was so hard ………………….hope to juss score a 50 …the june exams were ol unfriendly …hope m nt the only one complaining ..

How much marks are allocated just for the decision tree ?

I couldn’t think of much points for the shortcomings for it 🙁

Same as my calculation
I spent lots on time in there
Anyone could me that is correct or not

It would have a lot of discussion on decision tree part(b)
The calculations only account for 5 marks ! I think , same as previous sittings
Anyone could tell me

On overall I found it a bit hard.

B section: all part b of the questions were either unexpected or hard to find in the scenario.

A section:
Q 1b & 1c were quite demanding in terms of time pressure.
Q1 a: a bit difficult to find what he was really asking (strategic analysis of the options & methods) but most of the analysis part (SWOT) was already done in the scenario, so a bit difficult to add value on them???

Very time pressured.
Section A: where you are asked about trade rec and trade payables, bringing each ratio to the 30 day national average would save approx 1.5m therefore the CEO’s assumption that better financial management would fund the project upgrade was very optimistic.

Non-Current liablities was the only debt figure to use for the gearing calculation. There was scope to add debt but again not enough for the project upgrade.

I forgot to add in my answer that equity was not desired by the current shareholders as the wished to retain ownership.

HEllo Guys As from my Practise
I made two decision trees seoerately for X and Y
Lyk made 2 branches of High and LOw By using the option X
then do the same for Y, Then Comapre bith that which 1 is suitable
Is this right or wrong?

It was okay except for the decision tree (geez, I never expected it, maybe from F5).

It too long, reading time should be reviewed, it should be 30 minutes because at Professional level you need to apply the info in the scenario to various models – you cannot do this if you haven’t read the scenario thoroughly!

Decision tree shortcomings
– predicting profits so far into the future is hard, prone to error.
– coming up with probabilities is hard, prone to error.
– risk involved in using past experience to predict the future.
– decision tree only gives the mean of the probability distribution – the variance is required for the result to have any real context.
– the discrete probability distribution on which the model is based is unrealistic in the real world.