In mock exam 1 of bpp kit, ques 6 asks which statement is correct .. Option A is - tax allowable dep. Isna relevant cashflow when evaluating borrowing to buy compared to leasing as a financing choice. Why this option is also not correct ?
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Relevant cash flows
7y ago#1The option you quote is certainly not question 6 of the mock exam 1 in the current edition of the BPP Revision Kit.
However, depreciation is not ever a cash flow in any questions!!! It is relevant for calculating the tax payable, but the depreciation itself is certainly never a cash flow!
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