[evgeniia]

already understood. It was very easy. No need to answer.

[evgeniia]

Thank you for answer.
Why do you say, that there is no information about operating lease? Cafes rent their property with a 5-year lease paying 2.875.000 $ per year and Juicey paid 358,800 $ p.a. for operating lease.

[evgeniia]

Rohan, Thank you very much!

[evgeniia]

+1. Join the club. I did the same mistake. 🙁 I guess, that we received 0 out of 15 marks. I also failed. Have you seen answer to task 1, point iii in Eva calculation? I need help in understanding the solution. I use Kaplan publishing for preparation. In this book is written, that for NOPAT needs to be added back: development and advertising costs, operating lease, accounting depreciation, interest paid net of tax. Why all these ignored in official answer? and why lost tax relief on interest is deducted whereas interest net of tax is not added back? And I would add back all marketing costs as (for EVA calculation) they are considered to be investments for the future, aren’t they?
May be I’m using wrong book for preparation or my understanding is wrong?
Which literature you use?

Thanks a lot in advance
Good luck in December session

[Author]

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