PYQ Dec 2009Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › PYQ Dec 2009This topic has 3 replies, 2 voices, and was last updated 6 years ago by John Moffat.Viewing 4 posts - 1 through 4 (of 4 total)AuthorPosts August 26, 2018 at 7:42 am #469470 toushigaParticipantTopics: 424Replies: 172☆☆☆☆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. August 26, 2018 at 7:51 am #469476 John MoffatKeymasterTopics: 57Replies: 54700☆☆☆☆☆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. August 27, 2018 at 1:58 am #469562 toushigaParticipantTopics: 424Replies: 172☆☆☆☆Thank you for your replyI just find out they had included them in last part, but wonder the license fee has tax benefit on it? August 27, 2018 at 9:28 am #469609 John MoffatKeymasterTopics: 57Replies: 54700☆☆☆☆☆It is an expense, and will therefore reduce the taxable profit, and therefore will save tax.AuthorPostsViewing 4 posts - 1 through 4 (of 4 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In