Question 16.3

  • Thread starter Thread starter Rebecca Barton
  • Start date Start date
R

Rebecca Barton

Member
I’m struggling to work out where the PV of salaries over next year of 0.005 comes from in question 16.3 from the exam style questions.
 
Hi Rebecca, the bottom row of the big table in the question gives the PV of total current salaries as £0.5m. In the calculations we divide this by 100 (to get the 0.005 you mentioned) because we want to express the result from the calculations as a percentage.

I hope that helps

Gresham
 
You must log in or register to reply here.
Back
Top