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Please help me to understand the Tax Allowable Depreciation usage in the NPV Calculation. In some questions it has been calculated and used, while in some questions it has not been used even though there are adequate information for the calculations.
Please help me to understand the usage of this TAD in the Capital appraisal especially in the NPV calculation.
You will never find a past exam question that has not calculated the TAD !!!
How we deal with the TAD is explained in my free lectures on Investment Appraisal.
Most of the way we treat TAD is revision from Paper FM, so if you were exempt from Paper FM then it might help you to also watch the free Paper FM lectures on Investment Appraisal with Tax.
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