- This topic has 1 reply, 2 voices, and was last updated 1 year 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.
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Rounding
Hello Sir,
Question 29 of the Acca FM specimen exam
The question asks us to calculate the expected Net present value. The EV is $26,500 which I had calculated correctly.
However, to discount it I multiplied by discount factor directly in my calculator (1+12%)^-3. The answer comes out to be $18,862.
The examiner has done this using the tables and has gotten the answer of $18,868.
This seems like a large discrepancy, and I wanted to ask in such a situation what do I use, the tables or the direct discount factor?
And to Clear up I was doing the exam on their CBE practice platform and their marking tool marked my answer incorrectly.
This isn’t a large difference but I would advise you to use the tables though to be consistent with their approach.
The tables are given to save time.
Exam answers marked by computers usually accept it as long as it’s within a range.