Npv

No. If it is paid in arrears then it is paid later than the end of the year. Questions usually say that it is paid one year in arrears which means it is paid one year after the end of the year. I do explain all of this in my free lectures on investment appraisal with tax.

But I saw a question in kaplan study text in that they assumed it to be in arrears?

I do not have the Kaplan Study Text (only the BPP Revision Kit) and so I cannot help you, other than to say that what I replied before is correct. Have you watched my free lectures?