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!
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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