CIMA P3 Financial risk – Adjusted Present Value

Comments

1. oportjunik says

   October 16, 2019 at 10:03 pm

   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

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