This was the exact type of problem I was searching for!!
@afihaileywibowo10955 жыл бұрын
Very clear explanation, thank you.
@milenamilojevic33244 жыл бұрын
Dude, you saved my presentation. Thank you!!
@Edspira4 жыл бұрын
Glad to hear it!
@waleedbaig12052 ай бұрын
Appreciate your effort. that's what i was looking forrrr.. Thank you Sir
@dexoda45594 жыл бұрын
Many thanks dude
@Johnny.bar994 жыл бұрын
I'M OUTSIDE THE EXAM ROOM, HALP
@ronniegaming1740 Жыл бұрын
Ohh did you passed?
@Johnny.bar99 Жыл бұрын
@Ronnie nope lol. I took it a semester and 600$ later lol.
@angelali63305 ай бұрын
Hi Edspira, in some questions, they do deduct the taxes in year 0, why is that the case when we don't deduct it in year 0 here?
@janicehu58234 жыл бұрын
thanks, it helps a lot
@brendanpeake43025 жыл бұрын
just in time for finals :D
@HalifaxHercules3 жыл бұрын
Is there a Canadian version of this tutorial, especially with the 1/2 year rule for assets used prior to 2019 and accelerated rule between 2019 and 2028? In Canada, if you used an asset prior to 2019, you have to use the 1/2 year rule, meaning that the 1st year depreciation rate is 10.5%. For most assets used between 2019 and 2024, you use the accelerated rule for year one at 1.5 times the depreciation rate, which is 31.5%.
@abdullahiramat2145 Жыл бұрын
How do we get the 79%? Thank 😊
@ABishop6815 ай бұрын
Tax rate was 21%
@dpt135 ай бұрын
It is 1-21% = 79%
@brettwood41743 жыл бұрын
i thought depreciation wasnt included when calculating npv
@yashbhalla258 ай бұрын
But tax saved from it will be included
@vijithsoman4 жыл бұрын
What if there is interest payment too?
@kieranjones95074 жыл бұрын
did you workout how to do it? I'm in the same boat
@vijithsoman4 жыл бұрын
@@kieranjones9507 Not yet.
@bkwebb24 жыл бұрын
@@vijithsoman Interest expense is just another cash outflow. Assume you had $1,000 annual interest. You would subtract that from your $20,000 inflow each year and then multiply by the 79% to get the after tax impact. Then continue to discount. If everything else in this example stayed the same your NPV would go down due to this additional outflow (expense). Hope that helps.
@HalifaxHercules3 жыл бұрын
Interest would be included as part of calculating the "Required Rate of Return" or "Weighted Average Cost of Capital". For debt financing, you use the After Tax Cost of New Debt when calculating your Weighted Average Cost of Capital.