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doubt regarding computation of cash flows after tax

Financial Management

sir, im a little confused about the terminology used in this question, the term used in the question is" earnings after tax" but you have assumed it to be cash flows after tax,will that assumption always hold true?,what if the the terminology used is profit after tax instead of earnings after tax?? Video Details Financial Management Investment Decisions 34. Illustration 15 - Replacement (Part 1)

aravind lalji

CA Inter

★ 0

06-May-24 13:01

Answers (2)

In this problem as mentioned, it is CFAT, but as you mentioned had the terminology been Profit after Tax, then for sure we would have considered PAT only With regards to the terminology, to understand what item of cash flow is be to considered based on the given data, I have clearly explained in the video lectures. Kindly watch them for clear understanding.