[rhydem]

I got it wrong it seems but it seems we should have had Tax saving from WDAs…

[rhydem]

Did anyone have the Purchase Vs Lease question?

I almost missed the “Lessor pays for the Emissions tax”

[rhydem]

Did anyone notice an error in one of the questions it stated something along the lines of Bluebird Co’s receipt was allocated to Finch Co.

However, Finch Co was never discussed in the pre-text…

[rhydem]

I had a table of the figures and used formulas rather than calculating manually.

So if I moved any line – the cell references would change completely. Was really annoying, I forgot to include the fixed cost and it took me an extra 20 minutes to rework it and ensuring all the references were now correct

[rhydem]

I have to say though the version of Excel that they use is terrible!

I couldn’t insert lines so so bad.

[rhydem]

The NPV question stated the following if I remember correctly.

Output
Sales
Inflation of sales
Operating cost
Inflation of op costs
Working capital – remember to make the balance 0 at the end (i.e. return the balance capital)
Corporation Tax (in arrears)

Only tricky bit was ensuring corp tax started in year 2 so you had a 5 period NPV rather than 4

[Author]

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