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AFM

answered on 02-Jul-26 12:36

Here, How would you arrive at the selling price of 568 [Video Time Stamp: 12:57]

latest answer

I meant 563 and not 568. It does not change the solution . It was a slip of tongue

pavan kumar

pavan kumar

CA Final

3K+

1

70

Depreciation

AFM

answered on 28-Jun-26 14:21

1. Sir, when figures are in nominal terms, depreciation is normal. if figures are in real terms depreciation will have impact of inflaion. can i summarise like this sir? 2. Sir, in method 1 we are inflating Operatring profit which is in nominal. this i could understand sir. But why we are again deflating at the end, which i could not understand sir. Can you please explain this. Thank you sir.

latest answer

Thank you sir

Selvakumar R

Selvakumar R

CA Final

470

4

78

EAC of new macine

AFM

answered on 28-Jun-26 10:59

Sir, EAC is calculated as if mchine replaced at year 0 and used for all years. But, sir the PVAF for cost of capital at 15% will be different if machice replaced at year 1 with usefl life of 8 years from end of 1 year. Am i wrong here sir? [Video Time Stamp: 05:57]

latest answer

In first part we computed EAC for a cycle of 8 years. Now that EACis equalised cost for any year. No matter when you replace the yearly cost will be that amount any time in next 8 years. Question of Different PVAF will not arise because you are looking at common cost called EAC from that time onwards

Selvakumar R

Selvakumar R

CA Final

470

1

105

File Attached

AFM

answered on 28-Jun-26 14:22

Can we solve like this sir? [Video Time Stamp: 11:54]

latest answer

Thank you sir

Selvakumar R

Selvakumar R

CA Final

470

2

93

Negative Sign

AFM

answered on 27-Jun-26 20:50

Sir is it okay to leave answer as negative values since it is cost or we have to ignore [Video Time Stamp: 03:19]

latest answer

you can retain it

Selvakumar R

Selvakumar R

CA Final

470

1

59

Change in NAV % and Change in shares bought and sell

AFM

answered on 26-Jun-26 21:04

Sir, do we need to show in a separate coloumn the change in nav and no of shares buy and sell in the table as its missing in the notes?

latest answer

Yes

Vijay Ramesh

Vijay Ramesh

CA Final

2K+

1

68

Illustration 12

AFM

answered on 26-Jun-26 10:50

Sir what about interest for the period from July 1 2013 to 31 dec 2013 (first 6 month) [Video Time Stamp: 17:41]

latest answer

As we do not know the int rate applicable for the first interest period for us to compute interest , we cannot compute it

Mhd Mmp

Mhd Mmp

CA Final

740

3

84

Notes

AFM

answered on 25-Jun-26 17:13

Sir it would be great if we get the unannotated pdf of questions

latest answer

Will be added

diya rajwani

diya rajwani

CA Final

8K+

1

105

Illustration 106

AFM

answered on 25-Jun-26 11:02

Sir how can bid grater than ask [Video Time Stamp: 22:39]

latest answer

When price currency interest rate is less than base currency interest rate then price currency appreciate and bid is > ask

Mhd Mmp

Mhd Mmp

CA Final

740

1

112

Inflation for depreciation

AFM

answered on 25-Jun-26 09:43

Sir, in 1st illustration - Method 1 we inflated depreciation but in this question we only took 200000 for every year without inflation can you please explain this sir. [Video Time Stamp: 14:54]

latest answer

Depreciation is accounted at historical cost. There is no impact of inflation on it. However when we compute tax and FCF and then apply inflation on it , we see an impact - this is the critical aspect we need to understand in both questions. Go through Q 42 where this diff comes out more clearly

Selvakumar R

Selvakumar R

CA Final

470

1

108