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Hello, Can you please help me with each of the factors in the licensing part, except for the license fee, none of my answer is matching.
Machinery – they sell it for 4 million but they are taking 1 m
Where is receipts from Fees GBP coming from?
Maintainance – they took half, why is that?
Staff costs – as per question it is 200000 per year, their figures are differentPlease help, Thank you!
This is actually a poor question to practice on because the examiner at the time set ridiculous questions and so was replaced. The current examiner is much more sensible, and his style is different 🙂
However…..
Machinery: this is the increase in the parent company’s cash flow referred to in the paragraph under FDI.
Fees GBP: These are the $H fees as converting into Pounds.
Maintenance: The 500,000 they are charging is double the amount that they are paying, so the net benefit is only 250,000.
Staff costs: It is 200,000 per year at current prices, and therefore the examiner expected it to be inflated by the UK inflation rate,
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