[Achu9191]

Got it sir thanks a lot…

[Achu9191]

What i mean by that was if i take the entire $5.4m (including issue costs) as cost of investment to find base case NPV and then reduce the issue costs as financing CF’s will that be correct.

Examiner only took $5m as cost for Base case NPV and then reduced the issue cost as financing CF’s.

[Achu9191]

So will we get marks even if we forget to reduce the issue cost and taking the full investment cost in base case NPV.

Thanks in advance…..

[Achu9191]

So if the qn only states that – Eg: you need 50m for a project and you can get a loan, we should take the grossed up value. And if the qn states the amount of loan taken then we do not have to take the grossed up value.

thank you so much ?

[Achu9191]

The question is indeed from the pre June mock 2024 and the debrief has been uploaded in the ACCA Student Study Resources youtube channel. It is the first 25 mark question.

[Achu9191]

So if we are calculating the tax saved on int paid on subsidised loan at actual subsidy rate then do we not have to calculate the tax saving lost and net it with the int saved.

[Achu9191]

okay sir, understood. Thank you.

[Achu9191]

So i can follow my method if a qn like this arises. Thank you so much for clearing this sir. ??

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