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Hello Sir,
In the question Prysor Co, in the solution I am confused why they first deducted TAD to arrive to PBT and after added it back when getting PAT.Thanks
TAD is allowable for tax and so is subtracted before the calculation of the tax.
However it is not a cash flow and so is then added back in order to get the final net cash flows each year.
Have you watched my free lectures on this (or if necessary our free Paper FM lectures on investment appraisal with tax, because the ‘rules’ are the same as for Paper FM) ?
Thank you Sir.
I have actually just watched your lecture and I got it.Thanks for the guidance.
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