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Cambridge International AS & A Level
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ACCOUNTING 9706/42
Paper 4 Cost and Management Accounting May/June 2025
1 hour
You must answer on the question paper.
You will need: Insert (enclosed)
INSTRUCTIONS
● Answer all questions.
● Use a black or dark blue pen.
● Write your name, centre number and candidate number in the boxes at the top of the page.
● Write your answer to each question in the space provided.
● Do not use an erasable pen or correction fluid.
● Do not write on any bar codes.
● You may use an HB pencil for any diagrams, graphs or rough working.
● You may use a calculator.
● You should present all accounting statements in good style.
● You should show your workings.
INFORMATION
● The total mark for this paper is 50.
● The number of marks for each question or part question is shown in brackets [ ].
● The insert contains all of the sources referred to in the questions.
This document has 8 pages. Any blank pages are indicated.
DC (PQ) 341053/1
© UCLES 2025 [Turn over
, * 0000800000002 *
DO NOT WRITE IN THIS MARGIN
2
, ,
1 Read Source A in the insert.
(a) Calculate the net cash flow for each year 1 to 4 for Option 1.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
DO NOT WRITE IN THIS MARGIN
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [4]
Additional information
Babar has a cost of capital of 10%. The discount factors for this are:
DO NOT WRITE IN THIS MARGIN
Year Discount factor
1 0.909
2 0.826
3 0.751
4 0.683
(b) Calculate the net present value (NPV) for:
(i) Option 1
...........................................................................................................................................
DO NOT WRITE IN THIS MARGIN
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
..................................................................................................................................... [4]
DO NOT WRITE IN THIS MARGIN
ĬÍú¾Ġ´íÈõÏĪÅĊÞù¸þ×
© UCLES 2025 ĬæĎòÖģĂĎÙøøąí½ĥâĆĂ
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9706/42/M/J/25
, ,
Cambridge International AS & A Level
¬Oz> 4mHuOªE_{6W
¬fqW§|bªE7U~
¥5ueUu5 ¥u U
* 3 3 9 8 3 8 1 1 4 3 *
ACCOUNTING 9706/42
Paper 4 Cost and Management Accounting May/June 2025
1 hour
You must answer on the question paper.
You will need: Insert (enclosed)
INSTRUCTIONS
● Answer all questions.
● Use a black or dark blue pen.
● Write your name, centre number and candidate number in the boxes at the top of the page.
● Write your answer to each question in the space provided.
● Do not use an erasable pen or correction fluid.
● Do not write on any bar codes.
● You may use an HB pencil for any diagrams, graphs or rough working.
● You may use a calculator.
● You should present all accounting statements in good style.
● You should show your workings.
INFORMATION
● The total mark for this paper is 50.
● The number of marks for each question or part question is shown in brackets [ ].
● The insert contains all of the sources referred to in the questions.
This document has 8 pages. Any blank pages are indicated.
DC (PQ) 341053/1
© UCLES 2025 [Turn over
, * 0000800000002 *
DO NOT WRITE IN THIS MARGIN
2
, ,
1 Read Source A in the insert.
(a) Calculate the net cash flow for each year 1 to 4 for Option 1.
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
DO NOT WRITE IN THIS MARGIN
...................................................................................................................................................
...................................................................................................................................................
...................................................................................................................................................
............................................................................................................................................. [4]
Additional information
Babar has a cost of capital of 10%. The discount factors for this are:
DO NOT WRITE IN THIS MARGIN
Year Discount factor
1 0.909
2 0.826
3 0.751
4 0.683
(b) Calculate the net present value (NPV) for:
(i) Option 1
...........................................................................................................................................
DO NOT WRITE IN THIS MARGIN
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
...........................................................................................................................................
..................................................................................................................................... [4]
DO NOT WRITE IN THIS MARGIN
ĬÍú¾Ġ´íÈõÏĪÅĊÞù¸þ×
© UCLES 2025 ĬæĎòÖģĂĎÙøøąí½ĥâĆĂ
ĥĥąĕµõĥµåµĥÅąÕąµåÕ
9706/42/M/J/25
