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Qs67 chmura bpp kit

Nnaina8y ago
I have few doubts in this question Sales and costs are just increased with relevant percentages but taking into account inflation of 8% in Meghan ...why is that ?? As the description says that they are current prices and cost ?? It's quite confusing ..when they give percentage increase each year and inflation with saying they are current ..means they are in real terms ?? Isn't it So I did according to my understanding first I increased the given current price 115200 *1.05 and then also multiply inflation 1.08^1 ( for first year) Second year I did 120960*1.05 and again inflation multiple with fig 127008*1.08^2 ......148142 and so on My whole answer is totally different and obviously wrong due to this ! I want to know why they don't take Meghan inflation in account If suppose in exam I make this way and I scoring nothing ?? Also I didn't understand the initial investment is not included in year 0 They are taken as present value for 5 years I m doubtful for above
Nnaina8y ago#1
Please guide me over this
John MoffatJohn MoffatTutor8y ago#2
You can find my lectures working through the whole of this question linked from the following page: https://opentuition.com/acca/afm/afm-revision-lectures/ As far as getting no marks in the exam, you do not lose marks twice for the same mistake - that is the same for all ACCA exams. So if you do something wrong you obviously lose marks for that part, but you still get full marks for everything else that you do right, even though the figures will be different. But this does highlight the importance of setting out your workings neatly - the marker can only give you marks if he/she can follow what you are doing :)
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