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Dec 18 exam question

This topic has 2 replies, 2 voices, and was last updated 6 years ago by John Moffat.

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December 8, 2018 at 1:15 pm #488459
manishatai
Member
- Topics: 35
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Hi John, in a lease vs buy question if we are told to ignore tax do we adjust the post tax discount rate of let’s say 9% and use 12% if we are ignoring tax? Thank you!
December 8, 2018 at 1:15 pm #488460
manishatai
Member
- Topics: 35
- Replies: 21
And use the pre tax discount rate ? Thanks
December 9, 2018 at 9:18 am #488543
John Moffat
Keymaster
- Topics: 57
- Replies: 54759
If you are told to ignore tax then you would use the pre-tax rates.
I guess you are referring to a question in the last weeks exam. I have not see the exam and without seeing the whole question I cannot possibly comment on what was expected.
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