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Bpp kit .. question no 147.. page 40
Sir, in the answer part A of this question , under cash inflows there is taxation shown with amount of 8 for year 2..3 and 4
Sir can u please explain how to arrive at this amount becoz i get a different answer.. is it 25 ×30% which is equal to 7.5
It is 7.5, but the answer has rounded everything to the nearest thousand (which is normal for F9 as you will have seen in my free lectures).
In Section C questions, rounding differences are irrelevant and it would not matter if you put 8 or if you put 7.5. The final answer might be slightly different, but that is not what gets the marks – the marks are for the workings and the approach.