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Exotica Ltd is investing in the production of a new watch. The revenue from this investment is $700, 000. Operating expenses is $500,000 and depreciation

Exotica Ltd is investing in the production of a new watch. The revenue from this investment is $700, 000. Operating expenses is $500,000 and depreciation is $90,000. Tax rate is 30%.

Based on the information answer the following questions.

a. Calculate earnings before interest and tax (EBIT).

b. Calculate tax paid by Exotica Ltd.

c. What is the profit for this investment?

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