discounting rate for calculating present value
This query is : Resolved
26 January 2010
the future cash flows are discounted to the present value using the required rate of return.
which rate of return should be taken for this purpose, before tax or after tax?
thanks
which rate of return should be taken for this purpose, before tax or after tax?
thanks
26 January 2010
Anshu i would like to restate ur question u already mentioned that it required ur req rate of return.... U hv to take at least risk free return nd depends upon ur investment or industry specific that what u can earn if u deploy funds elsewhere
27 January 2010
required rate of return shall be equal to cost of capital.
cost of capital is considered after tax.
So the rate of return shall be taken after tax for computing the Present value of cash flow after tax.
cost of capital is considered after tax.
So the rate of return shall be taken after tax for computing the Present value of cash flow after tax.
27 January 2010
thanks sir,
my query has resolved by it-self.
my query has resolved by it-self.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- Type of Capital Gain
- Booth for sales promotion
- F & O PROFIT REPORTING FOR AY 2026-27
- Can partnership firm show income under 44ad
- Regarding ITR filing with more value than showing in AIS/TIS
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
