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    (Original post by dulwin)
    Hey guys, this exam is also scaring me. I got a D last time round
    My unit 1 and 2 grades were both good so I need to improve on this

    ThereforeI have a few questions...

    1. What formulas should I memorise? Since they only give you some and not all
    2. Any predictions? Or likely things that might come up?

    Thanks guys
    1. Working Capital = current assets-current liabilities
    ARR = Average Annual Profit/Investment x100%
    Payback = Amount Invested/Annual Profit From Investment
    Market Growth = (New Market Size-Old Market Size)/Old Market Size x100%
    Market Share = Sales/Total Market Size x100%
    Free Float = EST(Next activity)-Duration(This activity)-EST(This activity)
    Total Float = LFT(This activity)-Duration (This activity)-EST(This activity)

    2. Finance will definitley come up. Not sure about the others though.

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    (Original post by Indyy)
    In my Sixth Form, everyone got B's and above apart from one D in Jan 2013.

    In Jan 2012 (My year), everyone got B's and above and one E. Guess who got the E? :cool:

    So yeah, it's a weird paper overall. I remember my teacher telling me the examiners dont have to have knowledge in the subject area to mark the paper. They just have the mark scheme and tick away.

    And are you the user who was in the Kaiser to Fuhrer thread? I thought i recognised your username or something...
    aah that's so worrying, they should be qualified to mark the paper at the least!! because only marking from the mark scheme is way too specific. I HATE THIS PAPER!!

    and yeah! haha, i recognised yours too! did you find that paper okay?
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    (Original post by sofiax0)
    aah that's so worrying, they should be qualified to mark the paper at the least!! because only marking from the mark scheme is way too specific. I HATE THIS PAPER!!

    and yeah! haha, i recognised yours too! did you find that paper okay?
    And AQA's mark schemes are just so vague.

    It was a good paper. Everything i wanted came up. How did you find it?
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    What ratios do we need to learn for this exam? I know theres around , but I can't seem to find what ones they are...
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    (Original post by kbr118)
    What ratios do we need to learn for this exam? I know theres around , but I can't seem to find what ones they are...
    Liquidity (current, acid test), profitability (margins, ROCE), creditor days, debtor days, asset turnover, inventory turnover, shareholder ratios (dps and dividend yield) and gearing. However, any of these that will be needed will be given at the start of the exam booklet, apart from profit margins
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    (Original post by Indyy)
    And AQA's mark schemes are just so vague.

    It was a good paper. Everything i wanted came up. How did you find it?
    they're weird. yeah i didnt think the paper was too bad i have no idea how ive done but the questions were quite nice so
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    Can anyone help me with payback period, I'm getting so confused with it, even though I shouldn't be

    on this question:

    Project cost: $25,000
    Cash Flow Year 1: $2,000
    Cash Flow Year 2: $8,000
    Cash Flow Year 3: $14,000
    Cash Flow Year 4: $20,000
    Cash Flow Year 5: $26,000
    Cash Flow year 6: $32,000

    What do you get the payback period for this and how did you work it out?
    thanks!
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    (Original post by nadster)
    Liquidity (current, acid test), profitability (margins, ROCE), creditor days, debtor days, asset turnover, inventory turnover, shareholder ratios (dps and dividend yield) and gearing. However, any of these that will be needed will be given at the start of the exam booklet, apart from profit margins
    okk thank you now need to actually try to learn them ! :P
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    (Original post by sofiax0)
    Can anyone help me with payback period, I'm getting so confused with it, even though I shouldn't be

    on this question:

    Project cost: $25,000
    Cash Flow Year 1: $2,000
    Cash Flow Year 2: $8,000
    Cash Flow Year 3: $14,000
    Cash Flow Year 4: $20,000
    Cash Flow Year 5: $26,000
    Cash Flow year 6: $32,000

    What do you get the payback period for this and how did you work it out?
    thanks!

    Year 0 (25) - Initial cost
    Year 1 (23)
    Year 2 (15)
    Year 3 (1)
    Year 4 +19

    So, payback is between the 3rd and 4th year.

    To find what week we do

    1/20 x 52 = 2.6

    Payback = 3 years and 3 weeks


    I could though be terribly wrong. I got a weird way of working it out, and i need to write it down.

    Edit - I worked it out on paper, and got the same answer. LOL
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    (Original post by kbr118)
    okk thank you now need to actually try to learn them ! :P
    Don't focus too much on these as the formulae are given. As long as you know what they mean and when to use in what situations, you'll be fine. Make sure you learn NPV, ARR, payback (the investment appraisal stuff) as this is not given
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    (Original post by nadster)
    Don't focus too much on these as the formulae are given. As long as you know what they mean and when to use in what situations, you'll be fine. Make sure you learn NPV, ARR, payback (the investment appraisal stuff) as this is not given
    Yeah they are the ones im going to learn, im retaking so I have a rough idea on most of them anyway
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    (Original post by kbr118)
    Yeah they are the ones im going to learn, im retaking so I have a rough idea on most of them anyway
    I'm retaking too:/ what did you get first time?
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    (Original post by Indyy)
    Year 0 (25) - Initial cost
    Year 1 (23)
    Year 2 (15)
    Year 3 (1)
    Year 4 +19

    So, payback is between the 3rd and 4th year.

    To find what week we do

    1/20 x 52 = 2.6

    Payback = 3 years and 3 weeks


    I could though be terribly wrong. I got a weird way of working it out, and i need to write it down.

    Edit - I worked it out on paper, and got the same answer. LOL

    ahh okay, you work it out a completely different way to how I would, but that's probably why I get it wrong every time, because in my book it says that the equation is amount invested/ annual profit from investment, but idk where i go wrong but that doesnt seem to work!

    on the method you used, you do it out of 20, because it was originally 20,000 right? so that means say it was like 100,000, it would be out of 100?
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    (Original post by sofiax0)
    ahh okay, you work it out a completely different way to how I would, but that's probably why I get it wrong every time, because in my book it says that the equation is amount invested/ annual profit from investment, but idk where i go wrong but that doesnt seem to work!

    on the method you used, you do it out of 20, because it was originally 20,000 right? so that means say it was like 100,000, it would be out of 100?
    My book doesn't even have a formula.

    I divided by 20 because that was the net profit from the next year. It wasn't originally 20,000. The initial cost was 25,000
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    (Original post by Indyy)
    My book doesn't even have a formula.

    I divided by 20 because that was the net profit from the next year. It wasn't originally 20,000. The initial cost was 25,000
    yeah thats what i meant haha, so say now the initial cost is 54,000,
    using the formula you use, is this right? or have i done something wrong?

    year 1 = 52
    year 2 = 44
    year 3 = 30
    year 4 = 10
    year 5 = (16)

    so then you'd do

    10/26 x 52 = 20 (because 26,000 is the net profit for year five - this is the bit im slightly confused on)

    so the project payback is 4 years and 20 weeks??
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    (Original post by sofiax0)
    yeah thats what i meant haha, so say now the initial cost is 54,000,
    using the formula you use, is this right? or have i done something wrong?

    year 1 = 52
    year 2 = 44
    year 3 = 30
    year 4 = 10
    year 5 = (16)

    so then you'd do

    10/26 x 52 = 20 (because 26,000 is the net profit for year five - this is the bit im slightly confused on)

    so the project payback is 4 years and 20 weeks??
    I just done that now and got the same answer as you.

    Basically, you start of with the initial cost, and you just keep cumulating the net profit onto the cost until you reach a surplus. When you reach the surplus the payback has been reached. (Because it's now a positive number, from a negative one)

    Then, you take the cumulative amount just before it reaches a surplus, and divide it by the next years net profit and either times it by 52 to get the weeks, or 12 to get the month.

    I hope that makes sense it was kinda confusing me too!
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    (Original post by Indyy)
    I just done that now and got the same answer as you.

    Basically, you start of with the initial cost, and you just keep cumulating the net profit onto the cost until you reach a surplus. When you reach the surplus the payback has been reached. (Because it's now a positive number, from a negative one)

    Then, you take the cumulative amount just before it reaches a surplus, and divide it by the next years net profit and either times it by 52 to get the weeks, or 12 to get the month.

    I hope that makes sense it was kinda confusing me too!
    yes it does!! thank you so much, if this comes up in the exam you are my actual life saver!
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    (Original post by sofiax0)
    yes it does!! thank you so much, if this comes up in the exam you are my actual life saver!
    + With your example




    0 | (54) | (54) --------------------> Initial cost
    1 | 2000 | (54)+20 = (34) ---> You just keep adding the net until you reach a +
    2 | 8000 | (44)
    3 | 14000 | (30)
    4 | 20000 | (10)
    5 | 26000 | +16

    Payback is clearly between years 4-5 because that's where the cumulative returns become positive.

    So, you take the cumulative returns of year 4 (10) and divide that by the net returns of the next year which is year 5 (26) and times that by 52, to get the exact week of where payback occurs in year 4. So it's 4 years. 20 wks.

    I hope that's kinda clearer LOL.

    And dont worry about!
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    Hi guys this is my 3rd time!
    got a D first then a U ! But every time my teacher marks it I get an A, external student now finding it so hard to get the same answers as mark scheme!
    How is everyone revising
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    heyhey- does anyone have any idea of what may come up? like what your teachers have suggested to look over because it is likley to come up?
 
 
 
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