pev exam 2.3

GAVINWILLIAM2005

is any one still as worried as me referance the question 2.3 on section 2 about the discount 's

King of the Mountains

Was worried, I have got it completely wrong but feel better now that I have accepted failure and look forward to the resits!

Poppy

PEV Acceptance

Have to agree that Failure appears to be a definite for this paper, if the pass mark is between 70 and 80% then 2.3 means a failure. :crying:

Best to assume the worst, hoping my DFS though was fine so just one to do in June.

Big Bird

I also think I have failed due to this question, it was a big question and must have been worth a lot of marks, and I could not for the life of me remember how to do it, and I had worked so hard, the exam had been going great up untill that point, and i think that to pass I will have had to score about 100% on the other questions which is highly unlikely. Our tutor has been saying that it was really unfair to put that question in, as in theory someone may be doing that exam that has not done the costing exam relating to discounting, and this is actually the case with a student in our class.
I am not sure whether to attempt it in June along with PEV and DFS or wait until next December. I will see how it goes.
:thumbdown::thumbdown::thumbdown:

Pigpen

I got all the rest of the exam correct (as per Sandy Hoods answers) and I recommended the investment be made which seems to be right but I divided the DF instead of timesing them cos in my tidy mind I thought the running costs of £30k per annum would increase year on year so to multiply didn't make sense :mad2:
If I fail solely because of this I will not be happy !!!

SandyHood

Pigpen
I would imagine that the discounting would not be given many marks this time as it was being assessed in this way for the first time.
So any errors would only lose a few marks.

Do you understand now that future cash flows should be converted (discounted) to lower "present values"?

Pigpen

Hi Sandy - Yes I kinda knew the theory but couldn't quite remember and I supposed that a cost of £30k per year would actually increase year on year - as would the labour saving so went with that as wasn't completely sure - Wrong obvioulsy - Annoying cos I totally understood the theory of DF - i.e £1 this year would be worth £0.952 next year etc - Ah well Feb will be the day of reckoning - I am positive about the PCR result tho and thanks for posting your answers