Hi,
For question 32ai Pelta - Sep/dec17 paper.
Please could you explain why the NPV included the PV calculations of year 5 tax cash flows. Although I worked them out when practicing my answer. I wasn't sure to take them into the final NPV as the question mentioned the Directors evaluate investment projects over 4 years.
I don't understand why, please could you help.
Many thanks
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Pelta Sep/Dec 17
7y ago#1The question says to evaluate over 4 years of operation, and the final year of operation results in a tax effect one year later i.e. at time 5.
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