- This topic has 5 replies, 2 voices, and was last updated 6 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
Viewing 6 posts - 1 through 6 (of 6 total)
- You must be logged in to reply to this topic.
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Question numb 61(objective) kaplan exam kit
Can some one please explain with the above mentioned question part?I’m unable to derive answer as per kit
I am sorry but I do not have a Kaplan Kit and so I cannot help you.
(If it is a past exam question then say which exam and I can then find it)
I will type question for you as It has never been asked in exam.
Q: A company buys a machine for $11000 & sells it for $2000 at time 3.running cost of the machine are time 1=$3000 ,time 2=$5000,time 3=$7000.
If a series of machines are bought ,run and sold on an infinite cycle of replacements,what is the equivalent annual cost of the machine if discount rate is 10%??
A. $22114
B. $8892
C. $246
D. $7371
The first machine has the following flows:
0 (11,000)
1 (3,000)
2 (5,000)
3 (5,000) (7,000 – 2,000)
The present value at 10% is $21,612
The EAC = 21,612 / 2.487 = 8,690
Assuming that you have copied the question correctly, then this is one of the errors in the Kaplan Kit (have you checked their website for an errata sheet?)
The ans in kit is 246$.
even I got ans as 8690.
The correct answer is 8,690 🙂