Cost paper question no7(b) Wrong....

 this question is wrong ..as there mention in the quest about net of tax........

so this quest will be solved by incremental method.....

please friends ......give ur idea on this

Replies (2)
Originally posted by :kritesh tiwari
"  this question is wrong ..as there mention in the quest about net of tax........

so this quest will be solved by incremental method.....

please friends ......give ur idea on this
"

please read the question......n answer .. paper is uploaded ...

The question is not wrong, just that they haven't described the effect of tax shield on depreciation. Since effectively the question assumes everything is net of tax, so depreciation need not be taken separately, just the incremental costs and revenues.

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