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
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- TAN for Partnership
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Treatment of Pension ?annuity returns on PMVY
- TDS related Query_Liquidated Damages
- Last year TDS Claim
- STCG FOR GOLD ETFs
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- AY 26-27 ITR-4 FILING U/S 44-ADA
- NON- SUBMISSION OF LLP FORM 3
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
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
