Page 1 of 1

Question on Profit and Net revenue

Posted: Mon May 19, 2014 12:29 am
by Pashi
Encountered this question (PFA) in Oliver L.
I opted (A) by the logic to calculate PROFIT. However correct ans is (C). Can you please help me understand how? :?

Re: Question on Profit and Net revenue

Posted: Thu Sep 25, 2014 7:50 pm
by bs_pani
This is again a old post without any discussion on this

Cost Benefit Analysis
The question is asking about the Profile not revenue. In the Cost Benefits Analysis we go for Benefits / Revenue (not profit) against Cost. So as per me Option A is incorrect.

Present Value
This talks about discounted value of money ( I assume its again Revenue not Profile) coming after N Number of Year. Option B talk about “Saving”. So as per above assumption this is also incorrect.

Option C has “ taking into account taxes and capital cost”. Which mean we are deducting taxes from the Revenue by deriving Profile. And this is what the question is asking for.
It’s again based on my above assumption.

Request for export opinion.

Cheers,
Bhabani

Re: Question on Profit and Net revenue

Posted: Thu Sep 25, 2014 8:29 pm
by umeshbww
I don't think you will face this kind of question in Exam.