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Hi
I am really confused in timings while making cash flow in investment appraisal, when to start from year 0 or 1.
Like in this question they hve started from year 1,Jones ltd plans to spend 90000 on an item of capital equipment on 1 jan 2002. The expenditure is eligible for 25% tax allowance depreciation and Jones pays CT 30%. Tax is paid at the end of accounting period
See my answer to your other question about the timings.
You must watch my free lectures on investment appraisal, because timings are critical in NPV questions in the exam. You cannot expect me to type out all of my lectures again here 🙂
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