Question 2a
Marking Guide
| inflated incremental profit | 2 |
| taxation | 2 |
| working capital | 2 |
| estimate of discount value | 2 |
| net present value | 1 |
| issue cost | 1 |
| tax shield benefit | 2 |
| subsidy benefit | 1 |
| adjusted present value and conclusion | 2 |
| total | 15 |
| inflated incremental profit | 2 |
| taxation | 2 |
| working capital | 2 |
| estimate of discount value | 2 |
| net present value | 1 |
| issue cost | 1 |
| tax shield benefit | 2 |
| subsidy benefit | 1 |
| adjusted present value and conclusion | 2 |
| total | 15 |