Question
The realization of the investment by ABC, requires the incurrence of an (expenditures) Investment of PLN 360,000 which will be incurred as follows: - 70%6
The realization of the investment by ABC, requires the incurrence of an (expenditures)
Investment of PLN 360,000 which will be incurred as follows:
- 70%6 in the first year
- 30% in the second year
Moreover, at the start of the investment, the Company will have to pay the consulting company for its expertise, a sum of 30,000 PLN. Operation of the investment will begin at the end of the first year, and will last for 4 years. The gross profit to be achieved by the company, from the realization of this investment will amount to PLN 70,000 in the first year, and will be increased by PLN 30,000, in each subsequence year the income Tax rate is 19%.Depreciation of fixed assets is fixed and amounts to PLN 72,000, each year.
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