Skip to content

Ask the Tutor ACCA FM

NPV

MJMuhammad Jawad8y ago
Hi John, I've a question regarding NPV If a question scenario has given tax,and says ignore taxation when calculating NPV,then which cost of capital is used? Before tax cost of capital or after tax cost of capital?
John MoffatJohn MoffatTutor8y ago#1
If you are told to ignore tax, then there is no tax and the WACC is calculated ignoring tax!
Sign into reply to this topic.