Question 1a
Marking Guide
| sales income without inflation | 1 | |
| inflation of sales income | 1 | |
| variable costs without inflation | 1 | |
| inflation of variable costs | 1 | |
| inflated fixed costs | 1 | |
| calculation of capital allowances | 1 | |
| correct use of capital allowances | 1 | |
| calculation of tax liabilities | 1 | |
| correct timing of tax liabilities | 1 | |
| selection of correct discount rate | 1 | |
| selection of discount factors | 1 | |
| calculation of net present value | 1 | |
| comment on financial acceptability | 1 | |
| max marks | 13 |