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Leasing..


Pardeep Garg (CA-Final Student)     21 May 2018

Pardeep Garg
CA-Final Student 
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Topic :-- Leasing

If interest rate on loan is 20%,
tax rate 35%,
& cost of capital if company is 16%

Then what will be discount rate for computing present value..??

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AMRITA SINGH (KOLKATA)     21 May 2018

AMRITA SINGH
KOLKATA 
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I also have the same query. I have found that in many questions they have taken 13% (after tax of 20%) as discount rate for calculating PV. But in some questions they have taken 16% also. I am also confused as which rate is to be taken for calculating lease rentals and discounting factor??

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(Guest)

Watch Mayank Kothari sir youtube video for the same

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KusHagra AgaRwal   21 May 2018

KusHagra AgaRwal

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you can take 16% as well as post tax loan rate

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Pardeep Garg (CA-Final Student)     22 May 2018

Pardeep Garg
CA-Final Student 
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yea...
I have got answer we can take either cost of capital or post tax loan rate..

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