Investment Appraisal

sammyd22

Hi,

I am studying Investment Appraisal at Cima level P1 which has been dropped down from P2. I covered this briefly in AAT but its cloudy.

I was wondering if you had any advice, Key notes, examples of the calculations and lay out of this as the Volume of the papers im studying are restricting my revision time.

If anyone has studied this on CIMA and detailed Questions with solutions with Excel would be well appreciated.

Any feedback would be appreciated.

[email protected]

Kind Regards

Steven.

slackda

Will drop you a mail with some BPP notes , if my scanner is working. at work atm

crispy

Hello,

If you were to look at the previous P2 papers you should find plent of longer NPV questions to practice with. A few things that I remember

- Including only relevant cash-flows to the investment decision
- Using the correct cost of capital (with/without inflation)
- Capital Allowances available (I would keep the Tax calcs. separate from the main NPV workings as it can get all messy).

I took/passed P2 in Nov '09 - there was a pretty good example in that paper.

sammyd22

slackda wrote: »

Will drop you a mail with some BPP notes , if my scanner is working. at work atm

that would be good thanks.

sammyd22

crispy wrote: »

Hello,

If you were to look at the previous P2 papers you should find plent of longer NPV questions to practice with. A few things that I remember

- Including only relevant cash-flows to the investment decision
- Using the correct cost of capital (with/without inflation)
- Capital Allowances available (I would keep the Tax calcs. separate from the main NPV workings as it can get all messy).

I took/passed P2 in Nov '09 - there was a pretty good example in that paper.

Thanks Crispy,

Ill do that!

crispy

All the best guys, it felt great to finally receive my Adv. Diploma
(I started at AAT Foundation). If you are like me you will also enjoy the learning and challenge involved during the course.

sammyd22

crispy wrote: »

All the best guys, it felt great to finally receive my Adv. Diploma
(I started at AAT Foundation). If you are like me you will also enjoy the learning and challenge involved during the course.

yeah i started from Foundation all the way up!

AAT offers exemptions to Intermediate for students with minor ledger experience, my advice to them would be start at Foundation because that gives a great platform to progress as far as Double entry Goes!