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Hi, can you please explain why in the Tippletine question the financing side effects include the Tax relief lost on the Subsidised loan but not in the answer for Amberle?
Both questions ask for the Adjusted PV and are financed by subsidised loans
In Amberle they have calculated the tax relief on the actual interest paid.
In Tippletine they have calculated the tax relief on the normal interest less the tax relief on the difference between the normal rate and the subsidised rate.
The end result is the same whichever way you show it (and it does not matter which way you show it in the exam 🙂 )
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