ERRATA: Hi everyone, one the viewers of this video identified a mathematics error in one of the examples I discussed in this video (see comment below submitted by Tzu-Chia Hsu - 4th comment down down). In the first example (at time-code 15:20), i mistakenly added in the final 'Salvage' value when it should have been subtracted. In a future version of this video, I will correct that example or any modified version of it appropriately. Thanks again Tzu-Chia Hsu :)
Additionally, you may wish to revisit Example #3. You correctly calculate the conversion factor to go to F given P. But then you don't multiply it by the P to actually calculate the F. The factor is 196,892,091.554 (note the 892...not 829 ). Now we must multiply that factor by P to obtain F. P is 100, so the final F should be 19,689,209.155.00. A rather tidy sum indeed. :) Note that all those formulas work the same way. They allow you to calculate the factor instead of looking it up in the table....but either way, the factor must still be multiplied by the known value to obtain the unknown. Thanks again for all the hard work! :)
In the MACRS example problem, the question states to use a 7 year depreciation value, while the solution shown utilizes the percentages from the 10 year MACRS depreciation.
Thank You for creating these FE preparation videos. I failed the FE the first time I took it last May, and I wasted so much time using those formula's to solve all the Eco problems. I guess the tables seemed too cumbersome for me when I prepared for that try, however following your recommendations in this video, I now find using the tables to b much easier.
You absolutely right. In Example 1 (at 15:20 ) I should have used a Minus (-) sign on the salvage value component. Thanks for catching that. I will review all other examples and then 'Pin' comment with all corrections at the top of all other comments (titled Errata). I will give you full-credit for the catch :) If I make a new version of this video in the future (possibly later this year or early next, I will make sure this issue does not reoccur.
Thank you for your efforts, however, I highly recommend recording a newer version of this video and replacing it. It directs people in the wrong direction with the wrong answers. Needs to be removed.
You are the fourth or fifth person who suggested that on this particular video, so I will add it to my Video Design/Production queue. Did you encounter any math errors? There are a couple of those in this video that comments have pointed out and that I've confirmed.
@@PE4Doers Yes, I saw the mistakes as well. I believe those mistakes are related to very fundamental concepts that may lead people to misunderstand very critical concepts such as the equivalent present value of salvage. It seems there is a queue to be created and you had been so busy the last 5 months (since the very first comment about the mistakes), so I suggest making remarks on the video with the corrections, instead of creating a newer version, it should be easier. Thanks for your efforts again. I plan to watch your other videos.
ERRATA: Hi everyone, one the viewers of this video identified a mathematics error in one of the examples I discussed in this video (see comment below submitted by Tzu-Chia Hsu - 4th comment down down). In the first example (at time-code 15:20), i mistakenly added in the final 'Salvage' value when it should have been subtracted. In a future version of this video, I will correct that example or any modified version of it appropriately. Thanks again Tzu-Chia Hsu :)
Additionally, you may wish to revisit Example #3. You correctly calculate the conversion factor to go to F given P. But then you don't multiply it by the P to actually calculate the F. The factor is 196,892,091.554 (note the 892...not 829 ). Now we must multiply that factor by P to obtain F.
P is 100, so the final F should be 19,689,209.155.00. A rather tidy sum indeed. :)
Note that all those formulas work the same way. They allow you to calculate the factor instead of looking it up in the table....but either way, the factor must still be multiplied by the known value to obtain the unknown. Thanks again for all the hard work! :)
@@michaellyons1313 OK, thanks again. I will take a look at that one as well.
In the MACRS example problem, the question states to use a 7 year depreciation value, while the solution shown utilizes the percentages from the 10 year MACRS depreciation.
Thanks for the great comment
I will take a look at that. A couple of mistakes were identified by others - I apologize.
@Arman Hossain Thanks I will double check that calculation.
Such a great explanation. I hope people will subscribe your channel as I did.
Thank you so much for the great comment 🙂 Have you sat for your FE exam yet?
Thank You for creating these FE preparation videos. I failed the FE the first time I took it last May, and I wasted so much time using those formula's to solve all the Eco problems. I guess the tables seemed too cumbersome for me when I prepared for that try, however following your recommendations in this video, I now find using the tables to b much easier.
Thanks you Venessa, very much appreciated.
For example#1 why do you add everything up.
Isn't the salvage value in the opposite direction?
You absolutely right. In Example 1 (at 15:20 ) I should have used a Minus (-) sign on the salvage value component. Thanks for catching that. I will review all other examples and then 'Pin' comment with all corrections at the top of all other comments (titled Errata). I will give you full-credit for the catch :) If I make a new version of this video in the future (possibly later this year or early next, I will make sure this issue does not reoccur.
Thank you for these videos! You're a great teacher.
You are very welcome. I hope you do well on the FE exam :)
Awesome explanation! I've really been struggling with this topic. Liked and subsrcibed!
Thank you for the great comment. I am glad it helped :)
This is great. Thank you!
You are very welcome. I plan on updating the next lesson in a week to 10 days. I hope that is in-time to help you with the actual test.
Thank you
You are welcome :)
Thank you for your efforts, however, I highly recommend recording a newer version of this video and replacing it. It directs people in the wrong direction with the wrong answers. Needs to be removed.
You are the fourth or fifth person who suggested that on this particular video, so I will add it to my Video Design/Production queue. Did you encounter any math errors? There are a couple of those in this video that comments have pointed out and that I've confirmed.
@@PE4Doers Yes, I saw the mistakes as well. I believe those mistakes are related to very fundamental concepts that may lead people to misunderstand very critical concepts such as the equivalent present value of salvage. It seems there is a queue to be created and you had been so busy the last 5 months (since the very first comment about the mistakes), so I suggest making remarks on the video with the corrections, instead of creating a newer version, it should be easier.
Thanks for your efforts again. I plan to watch your other videos.
@@ebryy You are welcome. I will look into adding those comments as you suggest.
Excellent!
Thanks you Sir