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Why they have considered dep as we do not take dep while calculating value of company?
The question says that there is an annual reinvestment needed to keep operations at the current levels that is equivalent to the TAD. I do stress this point in my free lectures as being a very common thing for the examiner to state.
Yes, but we do not consider investment for tax purpose but in this case, they have taken dep and are considering it for tax purpose as well.
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