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AFMNPV with tax allowances

Mmario1y ago
Hi John and other tutors, I would have started some practice on study hub and ended up confused. There is a project appraisal question that states capital allowances are available on the machine that was bought. However, when calculating tax the answer only calculated tax on the net operating cash flows which was 220k for 3 years and then added the capital allowances to the after tax profit (net cash flows-tax). Is this correct? from your lectures, we deducted capital allowances 1st from cash flows then calculated tax then added back capital allowances. Just trying to figure out if I'm missing something before the exam.
MmrjonbainModerator1y ago#1
If you want to ask the tutor something directly, please use the following forum- https://opentuition.com/forum/ask-acca-tutor-forums/ask-the-tutor-acca-advanced-financial-management-afm-exams/ Hope this helps.
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