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Hello everyone,
hope it is possible to post here such type of questions.
Anyway, thank you very much in advance!Some scenarious of exercises and, I am sure, some real practices assume that the tax is paid in the next reporting period, which is different from the period of its calculation.
As a result financial model has “some extra” year with the cash flow of tax and WDA (tax saving).
Should I take these cash flow of an extra year, when I am calculating NPV for a project?Thank you!
Best regards, Victoria
It depends whether the tax is in the period / year or in arrears ( this will be the one with the extra year) in an investment appraisal question
Clearly read the instructions given in the questionYou must watch our free lecture videos on investment appraisal and how to deal with tax
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