ASOp CO dec 09Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › ASOp CO dec 09This topic has 2 replies, 3 voices, and was last updated 12 years ago by John Moffat.Viewing 3 posts - 1 through 3 (of 3 total)AuthorPosts November 28, 2012 at 4:14 pm #55879 Vipin MemberTopics: 151Replies: 374☆☆☆☆In this question, cash flow of financing is discounted at cost of debt and cash flow of benefits are discounted at WACC.i have seen this only in this question, they are using 2 different discount rates to find NPV. why they discount it at cost of debt ? November 28, 2012 at 5:29 pm #109125 acca13MemberTopics: 57Replies: 175☆☆☆After tax cost of borrowing is used when you purchase or lease an asset, but when accepting a proposal of an investment is in question, we use the WACC November 28, 2012 at 7:06 pm #109126 John MoffatKeymasterTopics: 57Replies: 54479☆☆☆☆☆Correct 🙂 (It is only lease buy questions where this problem appears)AuthorPostsViewing 3 posts - 1 through 3 (of 3 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In