Hi Maria,
Need not have to worry so much there are not reallly that difficult at all.
Just some sharing with u from wat i have learned and understand. And i hope it does help u.
To do NPV question u must first get the cost concept correct and identified whether there are Relevant cost(eg. Future cash flow,incremental cash flow, opportunity cost etc) or Irrelevant cost(e.g sunk cost, committed cost etc). Then you must get the timing correct i.e inccur in Yr o, Yr 1 or any particular year. And also be very careful on the increase of cost percentage(whether increase once only or you need to compound it). Last sitting NPV question was not challenging at all as tested too few items. Perhaps you might look at the earlier past paper where the questions were really bulky but it is good for practice. I done from June 2004 till last sitting and i believe this NPV question if you master well you can easily score 90% of this question.
Of course beside knowing how to calculate NPV is not sufficient, as the written part occupy quite a lot of percentage as well. You need to know how to explain relevant cost, irrelevant cost and identify the examples from the question, waht are the advantages and disadvantages of NPV, what is capital expenditure and revenue expenditure. Btw, the stages involves in investment appraisal has not been tested for quite sometime perhaps you might need to take a look at that as well.
Simple payback period has been tested the last sitting so may be for this round you might need to learn ARR & IRR. You need to know the advantages and disadvantages for both as well.
Btw, is this the type of sharing you required? I did not share futher for other topic as worry it might be too redundant.
|
Cat 10
Today
Sponsored Links
because i have completely no idea as to wut shuld i learn and leave out...any tip for the theory part?...
Linear Mode
