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sir , in the answer of this question first why not start the adjustment of other costs from the year 1 inward why its start from year 2 .
second why tax benefit in CA from capital expenditure not add back for every year , just include tax benefit from unrecovered capital allowance which is 3.68also the second part for the question in calculating sensitive analysis the figure ( unrecovered allowance .027 ) how its derived
also in calculating duration why its start fro year 2 I mean not consider the negative cash flow in year 0 & 1
1. The outflows at time 0 and time 1 both relate to the capital investment. The other costs are only relevant for the post tax cash flows, which only start at time 2.
2. The only error related to the capital allowances is the proceeds of sale (in note 4). The FYA and WDA each year will not be affected by this.
3. it is 30% x the balance of 0.09 at time 6
4. This is the way we always calculate the duration.
thank you for your clarification , but why we deduct ( 1m from tax saving FYA .15 ( -.85 ) in year 0
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