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To calculate "value in use" of a plant why do we discount future cash flows of the plant at post tax discounting rate?

Financial Reporting
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Question added by Muhammad Saeed , Experienced Associate Auditor (Secondment) , Deloitte and Touche (Middle East)
Date Posted: 2015/12/29
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VADIM WAYYAS
by VADIM WAYYAS , Finance Manager / Finance and Accounting , BRIDGESEA SOLUTIONS PHILIPPINES, INC.

The reason why we discount future cash flows of the plant at post tax discounting rate is to arrive at a more reasonable, reliable, and less riskier net present value of future cash flows of the plant. 

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