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CIMA P3 Financial risk – Adjusted Present Value
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Hi,
I dont understand the part on PV of tax relief loss (0.072m). Why would this be a loss for us? When calculating tax shield we have used effective loan interest rate of 6% and in here we are saying that if we have used 8% we would have greater benefit from tax shield. I just feel are adding here apples and oranges. Would you be able to further clarify this?
John