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Project start time

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Project start time

  • This topic has 3 replies, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • August 7, 2020 at 8:42 am #579504
    Elmir
    Participant
    • Topics: 10
    • Replies: 15
    • ☆

    Hello dear Tutor
    Why in guestion Casasophia(6/11) we take into account that project start in 6 month but in guestion Okan co( first guestion of september/december 2019 past paper) we dont take it into account in calculations. Also we take into account that project start in one year in guestion Hathaway co.( 3rd guestion march 2020 past paper). How we have to decide when we have to do it and when not
    Thanks in advance

    August 7, 2020 at 9:52 am #579516
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54681
    • ☆☆☆☆☆

    It depends on the wording in the question.

    Okan specifically asks for the APV in six months time, and that is what is calculated in the answer.

    Hathaway is different in that it just asks for the NPV without stating when, and in that case it is the NPV “now”. In addition the question is asking for comparison with selling for 4.3M immediately which again needs to be compared with the NPV “now”.

    August 7, 2020 at 8:54 pm #579572
    Elmir
    Participant
    • Topics: 10
    • Replies: 15
    • ☆

    You are the best tutor. Thanks

    August 8, 2020 at 7:59 am #579594
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54681
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Project start time’ is closed to new replies.

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