Sir thank you so much for the video it has helped me a lot sir I almost lost hope but ur video helped me alot. I loved the way u explained each and every mcq with patience. Gratitude sir.
Thankyou Sir for the video. At 1:52:30, Q34 for year 5 calculation the product 197220 is actually 380,000*0.519 instead of 350,000*0.519 but I don't understand why we have to make any adjustments for sale of equipment when we are given after tax cash flows
when v sell v consider the sale value as cash inflow n also the gain/loss as outflow/inflow savings respectively.. but in this ques v hv only considered the gain_outflow(50k*60%=30k*.519=15570) but not considered the sale value of 50k as cash inflow@ PV (25950) ?
Thank you so much from the core of Heart sir. Your videos helped me a lot to crack my part 1 exam. when i was loosing hope i found the video of yours. 😍😍❤❤❤ every CMA candidates should watch these videos. Fantastic explanation
Sir the question no 16 which you have explained is clear now but should we not only consider existing machine depreciation to be carried forwarded in calculation of incremental CF only if in the question it is mentioned that it will be used further.
@1:53:55 y didn't v consider the sale value at the end of 5yr(beg of 6th yr) 50k as cash inflow @PV of yr1 i.e. 0.519*50k=25950???... V hv considered the tax impact on gain(outflow)on sale directly as 30k(50*60%)
Q#16, there is an expected salvage value $14000, and the question using the straight line method so why not taking the salvage value on consideration while we are calculating the annual depreciation of the new machine?
For investment decision analysis under straight line method, Dep = Cost / Est Life. The salvage value is considered at the end of life on after tax basis
1:33:23 Hello sir this is really helpful ,i have a doubt here that why didnt u take the administrative and interest expense ,is it cause they'd have been already deducted from the 20,00,000 sale?
hello sir @FTC Global one query i have completed all your support package playlist and earlier i have studied the becker book all for cma us part2 and also i have attempted all becker questions, so is there any need to do anything more? and is the support package sufficient for final revision before the exam?
Hi Madhav, Yes, it would be enough. I recommend, from now on try to pay special attention to larger questions. That's more data intensive. Super huge type. These are the kind of questions you can see on exams.
Kindly show us 14 th and 5th question MCQ diffrence ...Why different .. We can do like same 5 th question for 14th we get answer pls correct it ...This is because disposal no need of calculation because in 5th sum you didn't do we got direct answer why in 14th special calculation...Very disappointed ... Reply me comment ...
Time period is different, 5 th question they ask period 3 cash flow, at end of fifth year only we sold land, building, equipment Here they asked period 3, so we didn't take sales of land building equipment
there is a rate mentioned for four the year also. So you may consider it either the depreciation rate or the book value in fourth year. nonetheless it has to be brought to zero in the fourth year
# 5 , Why aren't the tax shields for 3 years only, per the question requirement? You took the depreciation amount for 1 year of depreciation, not 3 years...
@24mins y didn't v consider the loss on sale of old asset?(2l-1l) (sale value - book value) @40%as tax savings(cash inflow)?could Anyone clear my query
Trust me when I say this, you are one of the most AMAZING teachers I have seen in my life. Thank you for doing what you do !
Thank you you for your kind appreciation :)
Sir thank you so much for the video it has helped me a lot sir I almost lost hope but ur video helped me alot. I loved the way u explained each and every mcq with patience. Gratitude sir.
We are glad that our videos helped you in your preparations.
Good Luck with your efforts to qualify as a CMA 🙂👍
Thankyou Sir for the video.
At 1:52:30, Q34 for year 5 calculation the product 197220 is actually 380,000*0.519 instead of 350,000*0.519 but I don't understand why we have to make any adjustments for sale of equipment when we are given after tax cash flows
when v sell v consider the sale value as cash inflow n also the gain/loss as outflow/inflow savings respectively.. but in this ques v hv only considered the gain_outflow(50k*60%=30k*.519=15570) but not considered the sale value of 50k as cash inflow@ PV (25950) ?
Hope my query to u is clear☺️anything from ur end pls lemme understand
@59:45 the sale value of 30k nd cost of capital is not considered/relevant? Y?
Sir, Wonderful. You boost up our confidence level
Thank you so much from the core of Heart sir. Your videos helped me a lot to crack my part 1 exam. when i was loosing hope i found the video of yours. 😍😍❤❤❤ every CMA candidates should watch these videos. Fantastic explanation
you are tooo good sir and thank you from the core of heart [ iski jo aukat hai was epic]
😍
Thanks dear for your kind appreciation.
May God bless you with success in every endeavour of life
Thank you so much for ur wonderful explanation sir.....feeling blessed
Thanks Divyaa for your kind appreciation. 😊
Good Luck with your efforts to qualify as a CMA 👍
And stay blessed 😇
Very detailed explanation. Thank you sir.
You are welcome
Sir the question no 16 which you have explained is clear now but should we not only consider existing machine depreciation to be carried forwarded in calculation of incremental CF only if in the question it is mentioned that it will be used further.
Really it's very nice that new method on calculation for Q#27 very short, new generate approach! Thanks
Most welcome!
you are the best teacher
@1:53:55 y didn't v consider the sale value at the end of 5yr(beg of 6th yr) 50k as cash inflow @PV of yr1 i.e. 0.519*50k=25950???... V hv considered the tax impact on gain(outflow)on sale directly as 30k(50*60%)
amaizing explanation
Hi sir qstn no.34 u didn't include 50000 disposal. And hence calculation was incorrect, please let me know if I'm right?
Q#16, there is an expected salvage value $14000, and the question using the straight line method so why not taking the salvage value on consideration while we are calculating the annual depreciation of the new machine?
For investment decision analysis under straight line method, Dep = Cost / Est Life.
The salvage value is considered at the end of life on after tax basis
Hi sir thanks for this so I conclude that we shud never consider salvage value for calculating depreciation in investment decisions
Regards from India.. You're amazing
Thank you Ankit 😊
Love from Pakistan. 💕❤️
can we expect this though question in exam or will they give little easy and less time consuming questions .
Questions on exam are manageable and doable within the allowed
in qnno. 65, how have you found that the IRR < DR and moreover, how have you found the Discount Rate
Thank you very much! Grateful beyond words!!!!!
you are great sir .thank you
Thank you so much sir..can you please upload balance questions in investment decisions?
Is there any channel of yours where i can get lectures on CMA part 2
Yes you can check our playlist. We have whole part 2 there
@@FTCGlobal There are question videos of support package, I need your lecture videos for part 2. Can you please provide link of that.
@@nupurvarshney928 that's our paid package. Contact Sir Asif +923244121269 what'saop
Where can I find the lecture of explanation of the concept of this section?
1:33:23 Hello sir this is really helpful ,i have a doubt here that why didnt u take the administrative and interest expense ,is it cause they'd have been already deducted from the 20,00,000 sale?
we take only those cost elements that would change...
@@FTCGlobal thanks a lot
Sir question no 47 why are you not adding depn tax shield
When there is no tax. So no tax shield
Awesome, Great work!
The videos have been very helpful in understanding even the tough concepts! One of my query is that do we have profitability index in our syllabus?
hello sir @FTC Global one query
i have completed all your support package playlist and earlier i have studied the becker book all for cma us part2 and also i have attempted all becker questions, so is there any need to do anything more? and is the support package sufficient for final revision before the exam?
Hi Madhav,
Yes, it would be enough. I recommend, from now on try to pay special attention to larger questions. That's more data intensive. Super huge type. These are the kind of questions you can see on exams.
@@FTCGlobal okay....will be on it
Kindly show us 14 th and 5th question MCQ diffrence ...Why different .. We can do like same 5 th question for 14th we get answer pls correct it ...This is because disposal no need of calculation because in 5th sum you didn't do we got direct answer why in 14th special calculation...Very disappointed ... Reply me comment ...
You are right ...Agree
Time period is different, 5 th question they ask period 3 cash flow, at end of fifth year only we sold land, building, equipment
Here they asked period 3, so we didn't take sales of land building equipment
On question 16 - Doesn’t salvage value impact the depreciation expense in a period and thus the depreciation tax shield?
Doesn’t salvage value impact the depreciation expense in a period
No
and thus the depreciation tax shield? No
sir make video real option in investment decision
Sir where I can find this pdf plz tell me
Sir where can i find this pdf?
Q #57 why c choice is false????
Q #6 why not calculate the cash flow from old machine?
Need to ask one query - I have completed my wiley course for cma part 2 is that sufficient for types of question expected in the exam?
please reply
Yes it should be sufficient.
In qn. 52, how does that mean the NPV = 0
Hi Sir , Q38, The property qualifies for 3 year MACRS Dep. as per tax basis.
Why did you calculate tax savings for 4 Years ??
there is a rate mentioned for four the year also. So you may consider it either the depreciation rate or the book value in fourth year. nonetheless it has to be brought to zero in the fourth year
Thank you so much. On problem 16 he considered Salvage value in their working. Is this correct?
Never mind, you answered my question. 🙂
So helpful sir
You are amazing sirji
# 5 ,
Why aren't the tax shields for 3 years only, per the question requirement?
You took the depreciation amount for 1 year of depreciation, not 3 years...
It's straight line depreciation, it's the same for every year
Thank you
@24mins y didn't v consider the loss on sale of old asset?(2l-1l) (sale value - book value) @40%as tax savings(cash inflow)?could Anyone clear my query
I guess q70 is wrngly xplained?
sir why are you not subtract salvage value in q. 16 dep = 214000-14000/5
We don't use (Cost - SV) / Est life
for NPV computations
@@FTCGlobal sir why we not use discounting...
59:47
A small request sir...Can u pls share the pdf of this...It will be more helpful🙂
Whatsapp +923244121269
Thanks🌹🙏
I though