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in the textbook they have shown that we have to calculate the TAD and shown it as an addition in cash flow
DOUBT – could i subtract the depreciation then calculate the tax and then add back depreciation again or would would mark be deducted for doing so?
That is the normal way of doing it in Paper FM just as I explain in my free lectures on investment appraisal with tax (and seems of course to be the way that your book is explaining).
sorry sir i did not quite understand your reply which is the normal way of doing it the one explained in the textbook where you calculate the TAD and show it as a cash inflow OR When you subtract depreciation and calculate tax and then add back?
DOUBT – would marks be deducted for subracting depreciation calculating tax and then adding them back again?
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