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Hello Sir?For PYQ Sept/Dec 2016 Q2
“The initial selling price in year 1 is expected to be $100 per unit,before increasing with the rate of inflation annually”Should it be inflated?
As it not clear as what the variable cost stated: “VC/unit is expected to be $43.68 in year 1,rising by the rate of inflation in subsequent years annually”
Have you not looked at the answer? The question says it increases annual by the rate of inflation and that is what has been done in the answer!!
I mean should the year 1 sale price being inflated by 4% because of the “before” wording. I thought it’s mean it havent take into account of inflation rate in year 1. Misunderstood.
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