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Sir one more BPP Mcq#106
The perpetuity is received in arrears mean at the end of year so we write it in time 1..And the P.V is calculated as..
20/.1=200*.909(we multiply because its in year 1 and we want in year zero)=181.8
Tax P.V=20*.3=6/.1=60*.826(Because tax is paid one year after so first tax is paid in time 3)=49.56
So the P.V of perpetuity is 181.8-46.56=132.24but Unfortunately this is how i done..not KIT
Plz plz help me sir where you find me wrong..
Sorry Sorry i understand this Mcq
Because its perpetuity when we Divide by Factor its come to one year earlier from where prepetuity start..
So no need to multiply by D.F..and Multiply by one year D.F when calculating TAX
Am i right Sir??
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