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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Course notes Practice Question 9
Part (a) requires to calculate the NPV of the project. I do not understand why the capital allowance tax saving (0.083) starts from year 1 not year 2. What I understand is that the capital allowance should start at same time as tax on operating flows and has same length. So why it is not starting year 2 and only have 4 years rather then 5 years?
Looks like the same doubt I had.
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