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Investment appraisal (discounted CF)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Investment appraisal (discounted CF)

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • August 16, 2021 at 4:33 pm #631764
    neelamshahzadi
    Member
    • Topics: 4
    • Replies: 2
    • ☆

    Sir if there is a 3 years project. Tax is payable at the end of each year and tax allowable depreciation is claimed as early as possible, so how should we deal 3rd year allowance either taking balancing allowance/ balancing charge Or take 3rd year depreciation and calculate tax relief on them??
    Regards

    August 17, 2021 at 6:36 am #631792
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54806
    • ☆☆☆☆☆

    Given that the third year is the final year there will be a balancing allowance or a balancing charge.

    Have you watched my free lectures on investment appraisal with tax?

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