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Sir, I have a doubt regarding NPV calculation
After calculating TAD, we take the NBV of the final year and then subtract from the scrap value. When the scrap value is greater,what is effect on it? Balancing charge or allowance..I’m confused
If the sale proceeds are greater than the tax written down value there is a balancing charge.
I do explain this in my free lectures on investment appraisal with tax. The lectures are a complete free course for Paper FM and cover everything needed to be able to pass the exam well 🙂
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