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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.
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