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Slow fashions – you don't need the book

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Slow fashions – you don't need the book

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
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  • August 29, 2018 at 2:08 pm #470013
    richardscully
    Member
    • Topics: 197
    • Replies: 145
    • ☆☆☆

    Sir

    I know you forgot your book so I will explain

    Slow fashions has capital rationing and asks the IRR of the best options

    The answer shows them taking the 4 best choices within allowed capex and doing the NPV of all the projects in the normal way with the discount and working out the IRR
    They did however give the IRR of each project. I did a weighted average and came out with a very close figure, like theirs was 14.25 and mine was 14. is that ok method?

    August 30, 2018 at 10:40 am #470122
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54722
    • ☆☆☆☆☆

    I did not forget it – I do not take Revision Kits with me when I am on vacation!!

    For that part of the question – yes, that is OK.

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Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘Slow fashions – you don't need the book’ is closed to new replies.

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