TAMPEM INC (DEC 06) Kaplan Revision Kit

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July 17, 2019 at 10:58 pm #524113
saqibh
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Investment will cost $5,400,000. TAD is 25%. In answer TAD is calculated on $4,400,000 in the first year. Should it not be on $5.4m?
If it should be on $4.4m then how do we arrive at $4.4m?
July 18, 2019 at 7:17 am #524139
John Moffat
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Note (1) in the question says that the $5.4M includes $600,000 for working capital and $400,000 for issue costs. TAD never applies to working capital or issue costs.
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