Mock exam 2 question 26

CFA Level II
#1

I don’t know if there is something wrong with the solution given, but isn’t EAA supposed to be calculated using the NPV of the project and not the 30m BRL which is the outlay?? The NPV I got is 28,164,716.88million and the pmt at each period assuming an annuity is 6.466million.

#2

My mistake - I realised that we have to assume that npv is 30m instead.

#3

Yea I did the exact same thing first time I read the question

#4

It’s kinda crappy when you make mistakes like this.Darn.

#5

hey guys, which Mock are you referring to? thought CFAI is providing only 1 Mock this year (AM & PM) for free. Are there any other mocks? Thanks! M.

#6

i was referring to the pm section of it…