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Hi My Dear tutor, I have a question.
Understood this part
Years———DF11%——-Tax saving—–Pv
1-4———-3.102
1-10——–5.889
5-10——-2.787———–112—————312Years————-DF 11%———Cash flow after tax——-PV
1-4—————3.102
1-infinity-1/0,11=9.091
5-infinity———-5.989————-(2802-785)=2017———12079.813=12080Coming to overall answer
1280+312-139(Negative N.P.V in part a calculation)=12253
I know i followed tax saving method correctly but what about infinity method?did i get 5.989 correctly?is this correct?my answer is different from the answer showen past paper there is 12257 so is it because of rounding?
The overall answer on your workings should be:
12080 + 312 – 139 = 12,253 (you mistyped the first figure) and the difference is purely because of rounding.
Yea Yea I just mistyped.So I wrote it correctly.Thank you very much my Dear Tutor and your effort is immeasurable .
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