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I am working out AGD Co, December 2005, BPP revision kit page 42 question 157 and tax is worked out poitive (for both the buy and lease) and not negative. Tax is an expenses so it should be negative.
They are not showing the tax payable. They are showing the tax saving that results from either the lease payments, or from the tax allowable depreciation. Since both result in tax savings, then they are inflows.
I suggest that you watch my free lectures on lease v buy where this is all explained, with examples. (Although it would seem that you should probably first watch the earlier lectures on investment appraisal with tax, in order to understand how TAD gives rise to tax savings.)
The lectures are a complete free course for Paper FM and cover everything needed to be able to pass the exam well.
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