June 2025 ACCA Exam Results

Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

Asset replacement

This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
October 10, 2020 at 4:12 pm #588533
phuongmore
Participant
- Topics: 132
- Replies: 128
Dear sir, please help me to explain why the following sentences is wrong:” asset replacement decision require relevant cash flow to be discounted be the after tax cost of debt”.Is it require to use cost of capital to discount? But I do not understand the reason why.
October 11, 2020 at 10:26 am #588583
John Moffat
Keymaster
- Topics: 57
- Replies: 54705
We always use the overall WACC when we are appraising projects. I do explain the reasons is my free lectures on the cost of capital.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.