International project appraisal technical article ACCA part 1 Penn co

(dinar m) (dinar m) (dinar m) (dinar m)
6 months 12 months 18 months 24 months
revenue 500 1000 2000 1500
labour costs* -150 -300 -600 -450
taxable flows 350 700 1400 1050
Tax @40%* -420 -980
Net foreign flows 350 280 1400 70

*(labour cost outflow is assumed to occur at the same time as revenue)
*(tax is paid yearly hence there should only be one outflow after every 24 months)

(millions) (millions) (millions) (millions)
6 months 12 months 18 months 24 months
Net foreign flows 350 280 1400 70
future exchange rate* 196.3415 216.6667 243.0894 268.2540
Convert into $ 1.78 1.29 5.76 0.26
6 monthly discount rate(w1) 1.684 1.154 4.859 0.208
Present value 7.905
Initial outflow* -6.667
NPV 1.238

*(since in order to convert the flows into the domestic currency we will have to sell the foreign currency and hence
the higher rate should be used)
*(in order to pay for the initial outflow of 1000m we will have to buy the foreign currency and hence the lower rate should be used)

hello! sir this was my attempt to solve the question mentioned in the Article. My answer is mostly correct the only thing I did incorrect according to the model answer in the article is that I showed tax deduction as yearly outflow. My reasoning for this was if there are any profits during the year and at the end of the year, the tax for both should be calculated at the end of the year and hence there is no delay it should be paid yearly. But in the article the examiner had shown the tax deduction as a 6 monthly outflow. Can you please explain why the tax should be shown as four 6-month outflow and not as two yearly outflows. Thank you!