Doric co (12)

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.

The TAD is allowable for tax and so is taken into account when calculating the tax. It is not a cash flow, but the same amount is spent on maintaining operations and this is a cash flow. Have you watched my lectures where I explain this??