Corporate Finance Question

[bigwilly]

Quick Question...Has anyone who has taken the Level 1 exam seen questions on teh exam regarding Replacement Analysis as detailed in the CFA books? Where you have to calculate CF's for each year and terminal values, and CFo? It takes so much time. Some End of Chapter questions gave you the CF/year net of Depreciation and labor savings and gave you the CFo and Cost of Capital. I hope they are more like this due to TIME! Thanks.



Edited 1 time(s). Last edit at Monday, June 12, 2006 at 02:09PM by bigwilly.

 

[Jenko]

wish for calculations
if they think its too much work, they might replace the calculation with weird question to test on the subject.

 

[CFAHouston]

On the exam, they usually ask you to calculate either the initial amount, or the terminal amount, or just one of the years.

But I didn't see any questions that were asked to calculate all of the above and didn't take more than a min or two.

 

[bigwilly]

Sweet...those damn end of chapter quesitons can take 5-15 minutes sometimes each! I didn't think they would do that to you on the exam.

 

[jamespucyk]

Ya, there are some questions that are longer, but basically, if the question can not be done in about 1.5 minutes it won't be on the exam.