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APV

This topic has 2 replies, 3 voices, and was last updated 9 years ago by John Moffat.

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November 30, 2014 at 10:28 pm #214917
jess
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if government provide subsidy loan, what rate should be used to discount tax relief on subsidy loan and the benefit of lower interest rate? risk free rate or cost of debt or interest of subsidy loan?
December 1, 2014 at 12:20 am #214931
icedawn
Member
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Risk free rate or cost of debt. Both are acceptable i think
December 1, 2014 at 8:58 am #214999
John Moffat
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Yes – there are arguments for both, and in the exam either is acceptable.
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