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is it possible to get negative cash flow before Tax and how can i deduct tax if it is negative ,
they give me information if the question for example the first year
Q – 7500
revenue – 300
cost – 90
fixed cost 000#/per year 3000
is that mean the fixed cost is 3000 000 ? if that the case there will be negative cash flow ?No this is unlikely but if you did have a case of a negative operating cash flow resulting in a tax saving, this is effectively a cash inflow for the project. This means that instead of paying tax, the company benefits from a reduction in its overall tax liability due to the negative cash flow.
thank you !
is that mean i did it wrong? Only the fixed cost they’ve mentioned it ($000/a year 3000) if i put 3000000 instead 3000 it will become negative cash flow, and i didn’t know what to do with tax so i consider it Zero in that year , as result i got negative NPV ? will i lose a lot of mark if i every thing else was correct?
– there was capital working and depreciation and inflation – is all that will be wrong – i don’t want to fail
section A and B was so hard and most of it theoretic questions so i kind of relay on section C questionsYou will get marked accordingly to OFR
So if you made a mistake the marker will follow the error through.
You will receive partial credit for those components.
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