?and which year capital allownce and tax benifit treatment?
SHould be in Year 0
Cost should be recorded in year 0 while capital allowance and tax benefit treatments start in year 2.
When dealing with cash flows, initial relevant investments are assumed to happen at the beginning of year 1, which as correctly stated in the two previous responses, is year 0. In terms of the SOFP under NCA's, the recognition will effectively be at the end of year 1 at it's NBV.