2019Spring Q14

exam6_passexam6_pass
in CIA.Accting

hi please correct me if i'm thinking wrong:
PV net = ((UEP net - FutureRe)ELR)PVfctr =39694 -> this is ok
PV Gross = ((UEP gross)ELR)PVfctr -> so no "future re term" = (65000 0.8)0.9729 = 5059

in the Answer, I think PV gross = 51900 -> do you know how do we get that?

Comments

  • grahamgraham
    edited September 2020

    You're correct. They were trying to make the problem easier by giving you the value of PV gross so you didn't have to calculate it, but sometimes their given information is not internally consistent. There were also other errors in the examiner's report for that question. (See the footnote under the BattleTable in the wiki.)

Sign In or Register to comment.