20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for December 2024 exams.
Get your discount code >>

Jun 15-MS

This topic has 1 reply, 2 voices, and was last updated 8 years ago by Ken Garrett.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
July 19, 2016 at 11:30 am #327594
dragon76
Member
- Topics: 50
- Replies: 77
Dear Ken,
Could you pls. clarify why the expected profit not deduct the cost to invest into the building and equipment 36M as depreciation
Thanks
July 20, 2016 at 7:16 am #327899
Ken Garrett
Keymaster
- Topics: 10
- Replies: 10533
You probably could do, but the answer treats it more like a NPV calculation. It can compare the cost of the factory to the expected profit before depreciation.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.