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Hi John,
In this question the capital allowances started from time 0 is this because the question states “The company has sufficient profits elsewhere to recover capital allowances on this project, in full, in the year they are incurred”?
Otherwise it would be matched with time 1?
This question was set by the previous examiner, and as I told you before he was dreadful at tax.
The tax timing in his answer is questionable, but since this wasn’t mentioned in the points listed as being noticed, it is reasonable to assume that they bit of the original evaluation was OK.
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