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why did the examiner inflate by 9% variable costs starting from second year but not from the first year?
Is it because it is written: “The following revenues and costs apply to the first year of operation” ?
Thank you in Advance!)
Yes – the figures given are the actual cash flows for the first year and therefore only inflate for the later years.
Thank you, John!)) Another trick from the examiner…
You are welcome 🙂