calculating PV of cashflows

This topic has 2 replies, 2 voices, and was last updated 2 years ago by learnsignal123.

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March 4, 2024 at 7:58 pm #701972
learnsignal123
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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
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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
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Yes i was doing Telford , tho this was just a common doubt
anyways
thank u lotsss and lotss
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