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Fm practical prb 10 ( capital budgeting)
Financial Management
Can we consider (deduct)opportunity cost( rent 30L) here before tax deduction...will such expense be allowed
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Gauri SheteSorry sir but I am not getting it The 30 L are for premises which could have been rented out But the statement is for period after installation in which the premises was not rented if i am not wrong ,so its an opportunity cost for FM we can take it but they have also shown tax benefit on it as it is deducted before tax..How
If you would have rented out, you would have earned income on which taxes would have been paid.
Sorry sir but I am not getting it The 30 L are for premises which could have been rented out But the statement is for period after installation in which the premises was not rented if i am not wrong ,so its an opportunity cost for FM we can take it but they have also shown tax benefit on it as it is deducted before tax..How
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