ACCA F9 Revision Download F9 Question Paper
ACCA F9 December 2014 Section B Question 4
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HI john at what time do you not use the tax saving why 450 was calclate 450脳.22=99can explain why we did not use that figure and why we add back the 450 and other times you add instead of substract
sir i realise that this is the other methods of doing the calculation when doing like on your lectures i get back the same answer so i realise it just a next methods ofdoing it thanks
That’s great 馃檪
Hi John,
Its been a while since i watched the video lectures
1)but in the videos relevant cash flows for DCF we only added the WDA once but never subtracted them?
2)Also if tax is in arrears then why isnt WDA in arrears?
Regards,
Furqan
Why do we not use point no. 8 (from information provided in the question) – “The investment will be partly financed by a $1,500,000 loan at 10% per year” ?
We never ever include interest in the cash flows (because it is taken account of in the discounting), and we always discount at the WACC (because this includes the cost of all of the long term finance).
I do suggest that you watch my free lectures on this – our free lectures are a complete course for Paper F9 and cover everything needed to be able to pass the exam well.
Thank you Sir?
You are welcome 馃檪
John, should the fixed costs not be $155 instead of $150 and then inflated at 3%?
Sorry, ignore me, I see where it is coming from now!
By the way, thanks John for all you do. I gave up on F9 and ACCA about 5 years ago.. I registered for the exam in June 2010, but didn’t even bother sitting the exam ( I sat and passed P1 then). I only decided in march this year to get back on ACCA and try to finish it.
Discovering this free and valuable lectures has meant that I now have enough confidence to write this exam (even tempted to try P4!), and I can dream of actually finishing my ACCA soon. I can’t recommend your website enough. God bless you!
Thank you very much for your comments, and best of luck with P4 馃檪
I got a positive NPV of 2600 using the other method of deducting tax,and then adding back the tax savings… is this to be expected or have I made an error somewhere else?
I guess my question is: Would the NPV be exactly the same using either method?
Yes – it should be 馃檪
Thanks lot for the lectures, please sir, i didnt see any place where you effected tax savings on the calculation, at what point should one effect tax savings allowance when calculating NPV.