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---------------312
Years-------------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=12080
Coming 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?
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march.june 2016 question 5 part b
7y ago#1The 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 .
7y ago#3You are welcome :-)
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