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calculating PV of cashflows

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › calculating PV of cashflows

  • This topic has 2 replies, 2 voices, and was last updated 2 years ago by learnsignal123.
Viewing 3 posts - 1 through 3 (of 3 total)
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  • March 4, 2024 at 7:58 pm #701972
    learnsignal123
    Participant
    • Topics: 20
    • Replies: 31
    • ☆☆

    If they’ve given us a disount rate of 7.5% on leasing and buying , we’re supposed to round it to 8 and calculate PV of cashflows using 8% disount right ?

    March 4, 2024 at 9:48 pm #701990
    IAW3005
    Moderator
    • Topics: 4
    • Replies: 1604
    • ☆☆☆☆☆

    Yes

    But aren’t you doing Telford

    It is 7.5 after tax and 6% before tax rate
    Because int on a bank loan is a tax deductible expense

    For lease v buy

    March 5, 2024 at 12:37 am #701998
    learnsignal123
    Participant
    • Topics: 20
    • Replies: 31
    • ☆☆

    Yes i was doing Telford , tho this was just a common doubt
    anyways
    thank u lotsss and lotss

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