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Sir,
I trust you are well.
I cannot get my head around the fact that we used 10% as the discounting rate. Why 10% sir?
There is a typing mistake – there should be an extra line in the question saying that investors require a return of 10%. I will have the line added.
(I assume that you are watching the lectures that go with the lecture notes? The notes are only notes, and it is in the lectures that I explain and expand on the notes. If you are not watching the lectures for any reason, then you should study using a Study Text from one of the ACCA approved publishers.)
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