[Emma]

I got 50. 5th time I took this exam. Congrats to everyone…and don’t give up to all others..good luck

[Emma]

Of course ! Thank you.

[Emma]

Thank you. I see from the answer now that because the question says ignore taxation this is why we use the before tax weighted cost

“Since taxation and capital allowances are to be ignored, and where relevant all information relating to project 2 has already been
adjusted to include future inflation, the correct discount rate to use here is the nominal before-tax weighted average cost of capital
of 12%.”

[Author]

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