- This topic has 3 replies, 2 voices, and was last updated 5 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › PYQ Dec 2009
Hello Tutor, For Q1, The ASOP CO section (b) for calculation of the npv, why the examiner answer does not include the machine cost, scrap value license fees, tax saving on license fees?Thank you.
They have been included.
The ‘present cost of financing’ was calculated in part (a) and includes them.
However, it would have been better to set out the flows again and discount at the WACC of 11%. The examiner mentions this in his note.
Thank you for your reply
I just find out they had included them in last part, but wonder the license fee has tax benefit on it?
It is an expense, and will therefore reduce the taxable profit, and therefore will save tax.