DCF Replacement

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Comments

  1. john always makes me understand by the way he lectures

  2. jhonmoffat always great

  3. ok sir….thanks for taking time to reply……..

  4. sir.in KAPLAN BOOK.. they say that and i quote…”note that the asset is only maintained at the year end if it isto be kept for a further year i.e ther are no maintaince cost in the year of replacement…”… but u have included running cost in year of disposal or scrap….plese guide me..im bit confused……………………reply promptly…..i will be obliged

    • @faizan1185, Your quote is not a general rule – it is just part of that particular question.

      You will always have running costs in the year of replacement (otherwise the machine will not be working in the final year!) and you will usually also have maintenance costs in the final year as well.

      Think about a car – if you replace it at the end of a year then you will still have to pay for running it during that year and for repairing (maintenance) during that year!

      Always assume this unless the question says differently. The question you are referring to in Kaplan specifically tells you to do differently (although it is unusual for it to say that) and so you do what you are told.

  5. very helpful. Thank you opentuition.

  6. great lecture i love teachers of opentuition

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