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NPV

This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.

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December 2, 2017 at 7:37 am #419575
jawad97
Member
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Hi John,
I’ve a question regarding NPV
If a question scenario has given tax,and says ignore taxation when calculating NPV,then which cost of capital is used?
Before tax cost of capital or after tax cost of capital?
December 2, 2017 at 9:33 am #419617
John Moffat
Keymaster
- Topics: 57
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If you are told to ignore tax, then there is no tax and the WACC is calculated ignoring tax!
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