[mansoor]

would it be safe to say that in the original question, the use of the phrase ‘prepaid expense’ was incorrect and it should have been ‘prepaid income’?

[mansoor]

thank u sir!!!!

[mansoor]

jun 05

[mansoor]

thank u sir!!!!

[mansoor]

thank u!

[mansoor]

i feel dumb……:) thank u

[mansoor]

thank u!!…now my next question….

it said in the question that the “residual value at the end of year 10 is $5m after tax”

so, i thought he was talking depreciation and i calculated the tax savings on 17.9m (25-7.1), where 7.1 will be the pre tax residual value.

obviously my numbers were all different from the answer.

question: how to read the question and figure out if the tax savings on depreciation need
to be calculated?

regards

[mansoor]

Thank u!!

[mansoor]

Sir…..its Dec 09

[mansoor]

right!

thank u Sir!

[mansoor]

Thank u sir!! :))

[mansoor]

mmmm.. which is right way? revenue or finance income?

[mansoor]

thank u!!!! 🙂

[mansoor]

Good evening Sir!!

that we take the present value now….isnt like unwinding the interest every year?

if yes…..cd u tell what will be the entries?

[mansoor]

Sir

Hope you had a good vacation 🙂

[mansoor]

thank u!

[mansoor]

that settles that .. 🙂
thank u

[mansoor]

🙂

thanks for clearing that!!!

[mansoor]

thank u sir!

one point tho: the question said that the npv calculated was for a 3 year project.

of what significance is this 3 year thing?

[mansoor]

thank u sir!

[mansoor]

i need to become Shakespeare to read p4 questions..:)

thankk u!!!!!!

[mansoor]

no problem sir…thank u

[mansoor]

sir..this awaits u .. 🙂

[mansoor]

thank u

[mansoor]

oh!! thank u!

[Author]

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