- This topic has 1 reply, 2 voices, and was last updated 6 months ago by John Moffat.
- You must be logged in to reply to this topic.
Hello Sir, please can you help to explain why in the npv calculations some questions add back Tax allowable depreciation after we have worked out the tax and some do not add it back in. Questions in ACCA book which adds it back is: Yilandwe (june 2015)& Chumura (12/13) VS do not which is Okan (sept 2019)
Should we also add it back?
Also I take it for FCF, we do not add it back at all ?
If the TAD has been subtracted in arriving at the net cash flows (in appendix 2a) then we would add it back because it is not a cash flow.
In this answer it has not been subtracted in arriving at the net cash flows because the tax has been calculated as separate workings, therefore there is nothing to add back.