Question 32b
Marking Guide
(b) Inflated revenue 1
Mean variable cost 1
Inflated variable cost 1
Tax liabilities 1
TAD benefits 1
Timing of tax flows 1
Calculation of PVs 1
Comment on variable cost 1
Comment on NPV 1
––––
9
(b) Inflated revenue 1
Mean variable cost 1
Inflated variable cost 1
Tax liabilities 1
TAD benefits 1
Timing of tax flows 1
Calculation of PVs 1
Comment on variable cost 1
Comment on NPV 1
––––
9