ECR June 2009 Payback question

chris_b

i sa he ECR NVQ in June and just had a look at the exam on the websiteIn the xam i calculated my payback to be 2years & 8 months.When i asked everyone at college they got 2 years and 1 month.I thought i must have being wrong but just re done the question and i got 2 years and 8 months again!!!!!!!!!!!!If you got 2 years and 1month can you show me your calculation?Also i put the break even point,target profit and margin of safety in units rather than revenue will i still get the majority of the marks if i put:

breakeven point 625000 units
sales units to reach target profit of 200000:1025000 units
mos in units 468750
mos in% 45.73

thanks
chris

mikes

The payback is calculated on the figures before they are discounted and not after. In this case 400-150-225 is 25 then divide by 200 and times by 12 this gives you 1.5 Which gives the answer as being 2 years and 1 1/2 months.

shuurow

Hi I managed the same 2.8 yrs I will check this wit my tutor realy, this is the one i was most worried about realy, it seems i have got a budy now.

JodieOwls

I worked out that it was 2 years and 2 months aswell, could you tell me how you worked it out to get 2 years 8 months. :confused1:

Vics

I got it being 2 years and 2 months aswell

mikes

The 2 years 8 months was calculated using the discounted figures.

A-Vic

I also got 2 years 1 month

rachy1975

i used discounted cash flow and got 2 years and 8 months...hopefully get a mark for calculating it correctly but using wrong figures.....lol

:001_smile:

rosa

i got payback 2 years and 9 months
MOS and MOS% i don't know how? there are no figures except break even point