Question
1 Roger bought a non-exempt fixed asset for use in his business in August 2000 for 1,700 and sold it in June 2020 for 5,000.
1 Roger bought a non-exempt fixed asset for use in his business in August 2000 for 1,700 and sold it in June 2020 for 5,000. What is the chargeable gain (or loss) and how is it going to be applied?
2 Please explain what grossing up means and give an example.
3 Dolly plc is considering investing in a project that has an initial cash outlay followed by a series of net cash inflows. The business applied the NPV and IRR methods to evaluate the project but, after the evaluation had been undertaken, it was found that the correct cost of capital figure was lower than that used in the evaluation. When Dolly corrects this error, will the NPV figure increase, decrease or remain the same and why?
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