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Jun 15-MS

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › Jun 15-MS

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by Ken Garrett.
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  • 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: 10583
    • ☆☆☆☆☆

    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.

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