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Division L has reported a net profit after tax of 8.6m for the year ended 30 April 2018. Included in the costs used to calculate
Division L has reported a net profit after tax of 8.6m for the year ended 30 April 2018. Included in the costs used to calculate this profit are the following items: Interest payable of 2.3m; Development costs of 6.3m for a new product that was launched in May 2017, and is expected to have a life of three years; Advertising expenses of 1.6m that relate to the relaunch of a product in June 2018. The net assets invested in Division L are 30m. The cost of capital for Division L is 13 per cent per year. Calculate the economic valued added for Division L for the year ended 30 April 2018.
Division L has reported a net profit after tax of 8.6m for the year ended 30 April 2018. Included in the costs used to calculate this profit are the following items:
Interest payable of 2.3m;
Development costs of 6.3m for a new product that was launched in May
2017, and is expected to have a life of three years;
Advertising expenses of 1.6m that relate to the relaunch of a product in
June 2018.
The net assets invested in Division L are 30m.
The cost of capital for Division L is 13 per cent per year.
Calculate the economic valued added for Division L for the year ended 30 April 2018.
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Discovering Advanced Algebra An Investigative Approach
Authors: Jerald Murdock, Ellen Kamischke, Eric Kamischke
1st edition
1559539844, 978-1604400069, 1604400064, 978-1559539845
