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Illustration 42
AFM
answered on 11-Mar-26 20:19
Sir, in the earlier section on the impact of inflation in capital budgeting, we studied that inflation does not affect the tax benefit arising from depreciation. However, in this question, the depreciation tax shield has been adjusted for inflation while computing NPV in real terms. Could you please clarify
latest answer
This is the latest exam question In this question at minute 7 I explained diff between this and first question Explaining again in voice note
Mhd Mmp
CA Final
★ 870
1
111
Domestic and Foreign Currrency
AFM
answered on 19-Mar-26 22:23
Base Currency is Dollar and domestic currency is Dollar .In the problem viceversa is taken and solved ,is it right ? [Video Time Stamp: 25:58]
latest answer
Thank you .
Abdul Rahman
CA Final
★ 21K+
2
190
External Funding Requirement
AFM
answered on 10-Mar-26 11:04
I have a doubt in suggested answers of Jan 26 paper of Question 2(b). In that question in ICAI suggested answer why they have taken two assumptions in two points i.e. in (i) With only 65% Utilization, growth by 40% can be achieved without any corresponding increase in Fixed Assets (65*1.4 times = 91%) and in (ii) With only 95% Utilization, growth by 40% can be achieved by corresponding increase in Fixed Assets of ` 1320 Crore (95%*1.4 times = 1.33 times of existing Fixed Assets of ` 4000 Crore). Projected Fixed Assets increase to ` 5320 Crore. My query is in first point they not increased the FA but in second point they corresspondingly increased the FA. Kindly Explain the reason for these.
latest answer
Okay sir
PG Bhanusree
CA Final
★ 3K+
2
206
Security valuation
AFM
answered on 09-Mar-26 21:43
How come the numbers 445.6 and 214 4 un denominator in alt 1 and 2 last part of solution
latest answer
Retaining earning is 200 and 50% dividend pay out then 50% is retained i.e 14.4 if you total it out 214.4
Gauri Shete
CA Final
★ 5K+
1
127
Number of questions to be solved
AFM
answered on 10-Mar-26 10:52
Hi sir. Since we have a huge number of questions in P600, is there any strategy to pick the selected number of questions that is required to be practiced during 1st or 2nd revision. And also can the important question list be used during 1.5 days preparation?
latest answer
U can never solve 100% before exams
Vidyashree Anand
CA Final
★ 0
4
154
Illustration 38
AFM
answered on 08-Mar-26 19:53
Sir, I have a doubt regarding the determination of the optimum replacement period. Why is the cost of the new machine not considered as a factor in this decision? I believe that if the cost of the new machine remains the same across all years, it should also be taken into account while determining the optimum replacement time. Could you please clarify this point?
latest answer
If some is common across all years would you not eliminate it? When finding out eac we are trying to compare opex and not capex as capex is common
Mhd Mmp
CA Final
★ 870
1
181
Illustration no 4
AFM
answered on 08-Mar-26 15:36
In the first line of the solution its mentioned as P Ltd will go on LONG. How to identify whether its long or short position. [Video Time Stamp: 39:18]
latest answer
FRA long
Vidyashree Anand
CA Final
★ 0
1
157
forward rate
AFM
answered on 08-Mar-26 15:32
u said in the question that they given 5 different government securities with 5 different coupon rates so each one is different from others then why did we take YTM of first security as base in order to get forward rate for second year for second security which is having different coupon rate Do we need to consider all the 5 different government securities as one security in order to find foward rates for each year ??? [Video Time Stamp: 00:54]
latest answer
Zero curve / bootstrappping
Hemanth kumar Kapuluru
CA Final
★ 2K+
1
100
Illus 26
AFM
answered on 07-Mar-26 19:44
Is this way of solving correct, sir [Video Time Stamp: 13:06]
latest answer
If answer is same then correct only
Swathi S
CA Final
★ 975
1
120
Reason why profit remains same under delivery based transaction and net cash settlement
AFM
answered on 07-Mar-26 16:20
1 .Delivery based transaction - Arbitrage method: Today - Buy shares at Rs. X & enter into short futures at Rs. Y Expiry Date - Receive proceeds of Rs. Y by delivering the share Profit/loss = Rs. Y - Future value of Rs. X 2. Net Cash Settlement: Today - Buy shares at Rs. X & enter into short futures at Rs. Y Expiry Date - Close the futures by net cash settlement (i.e. Rs. Y minus spot price as on expiry date = Gain/loss on FC) Expiry Date - Sell off the shares in cash market at spot price (i.e. Spot price minus Future value of Rs. X = gain/loss on sell of shares) If we see these 2 gains in together mathematically, spot price gets eliminated and finally the Gain/loss = Rs. Y - Future value of Rs. X. Am I correct, sir? [Video Time Stamp: 11:54]
latest answer
Yes
Swathi S
CA Final
★ 975
1
188