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Course notes Practice Question 9

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Course notes Practice Question 9

  • This topic has 3 replies, 3 voices, and was last updated 13 years ago by vedavyas.
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  • December 3, 2011 at 6:18 am #50866
    Ruby
    Member
    • Topics: 8
    • Replies: 6
    • ☆

    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?

    December 4, 2011 at 5:40 pm #90499
    vedavyas
    Member
    • Topics: 44
    • Replies: 60
    • ☆☆

    Looks like the same doubt I had.
    Check out what Sir John said here.
    My Doubt. It’s sorted now, read this to clear yours.

    December 6, 2011 at 9:32 am #90500
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54757
    • ☆☆☆☆☆

    I hope it is sorted now 🙂

    December 6, 2011 at 10:57 am #90501
    vedavyas
    Member
    • Topics: 44
    • Replies: 60
    • ☆☆

    🙂

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