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”This investment will increase production capacity by 9000units per year and all of these units are expected to be sold as they are produced”.
The examiner answer demonstrate that units each year 9000.
Wondering why it should not increase by 9k each year.
i.e Y1 9000 Y2 18000 Y3 27000Thank you
While you’re waiting for the official answer, I thought I’d butt in and offer my opinion.
I think what they mean, is that the machine will increase the capacity by 9000 units in excess of the previous capacity (i.e. before the machine is purchased). It doesn’t mean an extra 9000 units year on year.
I agree this question is quite confusing though. The working capital element threw me.
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