- This topic has 1 reply, 1 voice, and was last updated 6 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for December 2024 exams.
Get your discount code >>
Forums › ACCA Forums › ACCA FM Financial Management Forums › Q31a iii b – Paper Specimen 2016 (typo in suggested answer?)
Calculation of return on capital employed
Total cash inflow = 560,000 + 696,028 + 1,350,773 + 392,874 = $2,999,675
—————————————————————————
How was the annual cashflow calculated?
i managed to work out that the cashflow in the first year is ($20*103%-$8*104%)*60,000units-$17,000*104% = $560,000
but i am unable to work out the rest.
I suspect there is a typo, but then this exact questions was also present in Q4a iii – Paper Specimen 2014, and Q2b iii c – June 2009. *very confused*
ok, nvm… found the problem after reading through the entire solution in depth.
It has to do with rounding errors if one adjust the inflated price to 2 decimal place