P2 Calculations
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1
What calculations can be used as part of Throughput performance measures?
2
What is the proforma for calculating throughput profit
3
How do you calculate return per factory hour
4
How do you calculate costs per factory hour
5
How do you calculate throughput accounting ratio (TPAR)
6
How do you calculate IRR
7
How do you calculate MIRR
8
How do you calculate compound interest
9
How do you discount a future cashflow to present value (without the PV table)
10
How do you calculate the present value of an annuity
11
How do you calculate the net present value of a perpetuity
the r in this formula represents the cost of capital or required return expressed as a decimal ie 0.09 for 9%
12
How do you calculate the present value of an advanced perpetuity
13
How do you calculate advanced annuities
if an advanced annuity is for 5 yrs starting now, then the 5th payment is in 4 yrs, so you use the 4 yr annuity factor but add on 1 to account for the first payment at T0
14
How do you calculate delayed annuities
Find the normal annuity factor (cumulative PV) then find the delayed annuity factor (PV table number of years of the delay) multiply them together then use this to multiply against your annual cashflow
15
How do you calculate delayed perpetuities
16
How do you calculate IRR
17
How do you calculate MIRR
18
How do you calculate the equivalent annual cost for a capital asset replacement decision
19
How do you calculate profitablility index
20
What is the Discounted Payback Profitability Index (DPBI) and how do you calculate it
21
How do you calculate the payback period
22
How do you calculate discounted payback
Same as payback but you discount each inflow before calculating
23
How do you calculate accounting rate of return (ARR)
24
How do you calculate average value of investment for the ARR calculation
25
How do you calculate the present value of a tax allowance
First calcuate the depreciation based on instructions
Calculate the tax allowance on that depreciation by multiplying with the tax rate
Multiply the tax allowance amount by the dicount factor (cost of capital) for that year
Calculate the tax allowance on that depreciation by multiplying with the tax rate
Multiply the tax allowance amount by the dicount factor (cost of capital) for that year
26
How do you calculate woring capital cashflow
27
How do you calculate PV when there is inflation
28
How do you calculate the NPV of an investment using the money method and the real method
29
How do you calculate the real rate of return using the cost of capital and the rate of inflation
need to do minus one then times 100 after the division
30
How do you calculate the sensitivity margin of a project
If the cashflow under consideration is volume then divide by contribution
31
32
How do you calculate the IRR of an annuity?
Because an annuity has equal cash inflows you can shortcut the formula
33
How do you calculate the IRR of a perpetuity
34
How do you calculate PED
35
How do you calculate the demand curve
36
Example of calculating demand curve
37
How do you calculate pricing for profit maximisation
Profit is maximised where marginal cost equals marginal revenue
38
How do you use formula to calculate the price for maximum profit
39
how do you calculate capital employed
40
How do you calculate ROCE
41
How do you calculate operating profit margin
42
How do you calculate asset turnover
43
How do you calculate the current ratio
44
How do you calculate the quick ratio
45
How do you calculate return on investment
46
How do you calculate residual income
47
How do you calculate EVA
48
How do you calculate expected value
49
How do you calculate standard deviation
50
how do you calculate value at risk
51
how do you calculate the value of perfect information
52
decision tree
53
How do you calculate present value if you have different costs of capital in different periods