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#31
10-13-2009, 05:03 PM
 Retriever Member CAS AAA Join Date: Aug 2008 Studying for the last friggin' time! Posts: 363

Quote:
 Originally Posted by Daniel Roth I haven't verified with the graders, but I think it's appropriate to expect that the .25 point lost was not because of rounding to the nearest thousand. It was for incorrectly performing the rounding. The candidate wrote the MSL is 208,050, but then brought 208.5K into the calculation. This is incorrect. Such a mistake is essentially equivalent to a missed calculator punch, which, as noted already in this discussion, will cost you .25 point. Any of 208050, 208k or 208.1k should have been acceptable.
Great, thank you for your prompt response! I appreciate you clearing this up.
#32
10-20-2009, 07:07 PM
 Retriever Member CAS AAA Join Date: Aug 2008 Studying for the last friggin' time! Posts: 363

Simple question (I think)! If we have the following equation for which we needed the IRR, could we just use our trusty BA II+ and write the answer below and receive full credit?

Equation: -100 - 26v + 124v^2 + 31v^3 = 0

Below this equation, I would write the following on my answer sheet:

"Using the BAII+ Cash Flow Function
CF0 = (-100)
CF1 = (-26)
CF2 = 124
CF3 = 31
[IRR] [CPT] ==> IRR = 10.948%"

Is this too much, too little, just right?
#33
10-20-2009, 09:52 PM
 MyKenk Note Contributor Join Date: Nov 2005 Location: http://mhenk.blogspot.com Studying for CAS 9/8/whatever? College: Drake '06 Posts: 8,519

That's way too much. Just the formula and the solution are fine. maybe write "using ba2+ IRR function," but I'd even leave that out, personally.
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#34
10-20-2009, 10:07 PM
 triplea Member CAS Join Date: May 2007 Location: Chicago, IL Studying for Exam Committee Posts: 4,922 Blog Entries: 2

I would just write "using calculator, v = "
#35
10-21-2009, 11:45 AM
 Colymbosathon ecplecticos Member Join Date: Dec 2003 Posts: 4,988

And you would all get it wrong.

Spoiler:
IRR is an interest rate not a discount rate. You need to use Exam 2 methods to turn i into v.
#36
10-21-2009, 11:49 AM
 MyKenk Note Contributor Join Date: Nov 2005 Location: http://mhenk.blogspot.com Studying for CAS 9/8/whatever? College: Drake '06 Posts: 8,519

Not if you use a calculator. Put in the cash flows, it gives you IRR, not V.
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