Accounting Paper 42.

[SalmanPakRocks]

Okay but i got a negative Npv for the second ? Nd why would $200000 be inuded in net cashoutflow we usually dont include ot when calculating the net cash flows ?

Yup At 40% cost of capital, I got negative NPV as well.
Well, they said that at the end of 5 years, the loan would be repaid in full. That was usually to confuse the candidates.

 

[mania _ manal]

Yup At 40% cost of capital, I got negative NPV as well.
Well, they said that at the end of 5 years, the loan would be repaid in full. That was usually to confuse the candidates.

Hahaha yah i didnt include it wht i was trying to say is when calculating the net cash flows we wont include outflow of $200000 in zero year rite basically we do nothing with $200000 in net cashflows ?

 

[SalmanPakRocks]

Hahaha yah i didnt include it wht i was trying to say is when calculating the net cash flows we wont include outflow of $200000 in zero year rite basically we do nothing with $200000 in net cashflows ?

Actually, whatever netflows you'd get from year 1 to year 5; All of these would be deducted from 200,000 to get the final NPV.

 

[mania _ manal]

Yah yah just the npv right we wont sub the net cashflows from $200000 ?

 

[SalmanPakRocks]

Yah yah just the npv right we wont sub the net cashflows from $200000 ?

Nope, we won't subtract the net cashflow's from 200,000 separately. Just the total of Cashflow from year 1 to 5.

 

[mania _ manal]

Hahaha

Nope, we won't subtract the net cashflow's from 200,000 separately. Just the total of Cashflow from year 1 to 5.

thanks what abput q2 did ur balancesheet balace ?

 

[SalmanPakRocks]

Hahaha

thanks what abput q2 did ur balancesheet balace ?

Nope There was a difference of $915o
What about yours?

 

[mania _ manal]

Nope i had a hugeed difference ehat were the dep values u got ?

 

[SalmanPakRocks]

Nope i had a hugeed difference ehat were the dep values u got ?

11500, 11200 and 5856 something

 

[mania _ manal]

Frst two same but mv i got 4060.5

 

[mania _ manal]

Nd we had to adjust all the figures in adm nd dist ? Nd therr was a decrease in doubtful debts right ?

 

[SalmanPakRocks]

Nd we had to adjust all the figures in adm nd dist ? Nd therr was a decrease in doubtful debts right ?

Yup, a decrease of 1296 which I deducted from Administration cost.

 

[mrmt]

Mine ARR was 25% something while IRR was around 15% something.

for ARR, its right that after depreciation for each yr we got this 25. sth, buuuuuutt, ddint we hav to also include the loss on disposal in year 5? that would affect profit man! :/

 

[mrmt]

in q1 what were u guys getting for dividend yield and cover? and which option u suggested?

 

[mrmt]

and well. in q3, the second project had npv and IRR greater the one first, signifying that it had greater revenue overall since the dep charge ws same for each so was the interest payment. so ARR of 25. sth which was greater than second machine seemed err maybe nt very striking :/

 

[mrmt]

for q2 my balance sheet balanced. I got profit of something like umm 60009 or ath, don't exactly remember, though

 

[perfect1]

for q2 my balance sheet balanced. I got profit of something like umm 60009 or ath, don't exactly remember, though

My Profit also came to 60,009. Did anyone else get the same figure?

 

[zara97]

i rounded off my figures so i think i got 60,010, i think...

 

[zara97]

did any of u round off the motor vehicles dep. figure from 4060.5 to 4061... n another figure was also in point 5 so i rounded it off too to the next no, idk... my b.sheet difference was 1000

 

[SalmanPakRocks]

did any of u round off the motor vehicles dep. figure from 4060.5 to 4061... n another figure was also in point 5 so i rounded it off too to the next no, idk... my b.sheet difference was 1000

How did you get depreciation of 4060? Did you take affect of the motor vehicle sold?