Pelta Sep/Dec 17

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
February 27, 2019 at 11:08 am #506688
sm8980
Participant
- Topics: 48
- Replies: 38
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
February 27, 2019 at 3:57 pm #506719
John Moffat
Keymaster
- Topics: 57
- Replies: 54858
The 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.
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.