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In that case, I don’t think so, since the text said that 100% of the TAD was in the first year (not in the 4th – which would not make much sense to begin with anyway). You will only lose a mark or so, though, depending on the marking scheme.
“I remember question 2, to calculate NPV, a company can claim 100% tax allowable depreciation of non-current assets. But I donot understand it. What does it mean that the 100% of depreciation in the first year of project?. I remember that the relisable value is 5m”
It means that the 60m (if I recall) of the investment was to be deducted as TAD in the first year, and not over the x years of the project. The impact was that taxable profit was heavily negative in the first year, but this loss could be carried forward in the following years, and so would reduce taxable profit in those year. Cumulative taxable profit over the life of the project would be the same as with, say, straight-line depreciation over the life of the project, but timing of those profits would be different, and so would the discounted value of each year’s cash flows.
I got the same exam as aauchohan. The second question was about intra-group netting, then how to hedge receipt from the sale of a subsidiary (forward or futures). Calculations + comments. Then perhaps something else, but I don’t quite recall.