32 (a) Inflated selling price per unit 1
Sales revenue 1
Inflated variable cost 1
Inflated fixed costs 1
Tax liabilities 1
Tax-allowable depreciation benefits years 1–3 1
Tax allowable depreciation benefits year 4 1
Incremental working capital and recovery 2
Calculation of present values 1
Correct initial investment 1
Comment on financial acceptability 1
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