• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Save 20% on ACCA & CIMA Books

Interactive BPP books for June 2026 exams, recommended by OpenTuition.
Get discount code >>

PV

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › PV

  • This topic has 1 reply, 2 voices, and was last updated 12 years ago by AvatarJohn Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • April 7, 2014 at 10:22 am #164598
    Avatarumair001
    Member
    • Topics: 4
    • Replies: 5
    • ☆

    Whats the PV of 2,500,000 for 20 Years at 20%?

    April 7, 2014 at 4:15 pm #164652
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    You do not make it clear whether it is an annuity of 2,500,000 a year for 20 years, or just one flow of 2,500,000 in 20 years time.

    Whichever it is, the formula is given at the top of each of the present value tables and so you can calculate it with n = 20 and r = 0.20

    (Alternatively, if it is just one flow of 2,500,000 in 20 years time, then you can simply discount for 15 years at 20% and then for another 5 years at 20%. The answer may be slightly different because of rounding, but that does not lose marks in the exam).

    It would be very unusual for the examiner to expect you to discount for more than 15 years. At Paper F9 the discounting is generally trivial and is using the tables, because students have already been tested on things like your question, at Paper F2.

    At Paper F9 the problem is sorting out the cash flows, not messing around with the discounting which carries very few marks.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE Exams – Instant Poll

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • tomikacharles1986 on Depreciation Introduction – ACCA Financial Accounting (FA) lectures
  • CartelAwper on ACCA BT Chapter 3 – An organisation’s stakeholders – Questions
  • Colossus on Presentation of financial statements – Example 1 (revision) – ACCA Financial Reporting (FR)
  • Jay15 on Relevant cash flows for DCF Inflation (example 5) – ACCA Financial Management (FM)
  • oabilentatiwa on Process Technology and Quality control – CIMA E1

Copyright © 2026 · Contact · Advertising · OpenLicense · About · Sitemap · Privacy Policy · Cookie settings · Comments · Log in