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Hello Sir, for Kaplan textbook chapter 3 international operation and international investment appraisal
TYU 6 -exam standard questions
Foreign NPV-Puxty Cowhy the production cost is sales revenue / 2.5, not 1.5 as the markup is 150%.Thank you.
and why the year 0 rental charged do not attached any tax and the loss not carried forward to year 1 and to year 2?
Thank you.I am sorry but I do not have the Kaplan textbook and so I cannot help you.
its same with this question
https://opentuition.com/topic/p4-question-puxty-plc/It may well be the same question, but those posts were in 2013.
In 2013 I did have the Kaplan text, but I certainly do not have it now and so I have no idea at all about the question! Sorry.
Mark-up is the profit as a % of cost.
For every 100 cost, the profit is 150, and therefore the revenue is 250.Therefore for every 250 revenue the cost is 100, so in total 100/250 x revenue.
There is no such thing as ‘year 0’. Time 0 is a point in time and is the start of the first year. The taxable profit is calculated at the end of the year and if you look at the tax workings, the rent is subtracted in arriving at the taxable profit at time 1. Since it is actually a loss, the loss is carried forward and subtracted from the profit at time 2.
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