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Model test paper- I
AFM
In this question, what i did was as they have mentioned that cash flow is after recognising inflation hence I ignored the inflation rate, could you please tell what actually I misunderstood !
Answers (8)
Sriram Somayajula Admin
Inflation
I should have been more clear sir, yes i made an assumption and directly multiple PVF at 10% with cash flow but they in both solution including alternative they have considered 15.5%
Sriram Somayajula Admin
Pls download and send to q paper and answer sheet Non students are not getting access Will go though properly and respond
Assumption in both Alt appears to say that CF are nominal and PVF is real so convert PVF to Nominal - not sure why the answers under both alternatives vary
Sriram Somayajula Admin
Assumption in both Alt appears to say that CF are nominal and PVF is real so convert PVF to Nominal - not sure why the answers under both alternatives vary
Exactly Sir ! This is was what i was also confused for !
Sriram Somayajula Admin
Hmm Let me go through once again and get back to you
The rounded off discount rates differently in Alt 1 vs alt 2 🤦