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@olaf said:
Exactly that’s why I used 7% for EAC calculation….not sure if it was correct but I was wondering about that as well and finally decided to use 7%.
In my opinion the sentence to ignore taxation and capital allowance was for maintenance costs that if there was not this sentence they would require tax deduction.
I used 12% though. I didnt use the figure there. I dunno how i calculated another set of figures out and stating that the fig must include inflation. This qn really stunned me wif two sets of wacc
For qn 1b) did anyone realized the qn saying: machine 2 costs has included inflation? Since we r using nominal rate, does this means machine 1 we also have to include inflation?
@sohanidevi said:
how much did u guys got for the forward exchange and money market?
I got $251256 for forward. The difference for mine was $2400+ btw the 2 answers
Did you guys notice anything about q1b on machine 2 has included inflation. Then how about machine 1? Isit the figures before inflation?
