In leasing chapter....
For calculating NPV Salvage value sometimes taking as it is n sometimes after tax....
Y it's so??
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Replies (5)
when calculating from lessor's point of view, Salvage value to be taken after tax.
when calculating from lessee's point of view, Salvage value to be taken before tax.
vishesh g....in PM questions every time they provide tax rate....bt in solution sometimes they deduct tax fm salvage value n sometimes not....I m confused abt that
@ Shalini Gupta you can go one of those methods. correct way is u should deduct tax from salvage value
should I deduct always??
like short term capital loss🤔🤔
like short term capital loss🤔🤔
yes,if u deduct tax means, it's results in capital loss most of the cases.
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