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Question 12b.16 from BPP
Can you pls explain this question ?
1- what does NPV 0 mean ? ( It’s not always a ” number ” ? )
2- Why don’t we calculate NPV @20% ?
3 – I don’t really understand the explanation in the answer :
” @ some point 10% and 15% the NPV = 0 . When NPV= 0 , IRR is matched ”Thanks Mr.John
1. 0 is zero, which is a number.
2. It is obvious at a quick look at the question that the IRR (when the NPV is zero) is between 10% and 15%. We only use 2 guesses and so there is no point at getting the NPV at 20%.
3. By definition, the IRR is when the NPV = 0
You really must watch my free lectures on this.
I have watched your lectures twice .but there is few things that I’m still confused
And the way BPP explains their answer is so difficult to understand .
Btw , can you pls tell me parts will be asked in Part B ? Is it all about budgeting ?
Pv table will be provided in the exam ?Thanks Mr. John
According to what is written in the syllabus (on the ACCA website):
“Section B will contain 3 ten mark multi-task questions (MTQs) each of which will examine Budgeting, Standard costing and Performance measurement sections of the syllabus.”
The PV tables are provided in the exam (the formula sheet and tables on pages 3 to 6 of our free lecture notes are what you are provided with in the exam).
Question 12b22 from BPP
For Wye , why is the power of 0.25 there ( 1.20^ .025 ) ?
Thanks Mr John
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