A firm projects its revenue to rise 20% in each of the next 3 years. At the same time, it projects costs to rise 10% each year. If profit this past year was Rs 10Cr on revenue of Rs 100 Cr, what will be the accumulated profit at the end of the 3rd year?
A firm projects its revenue to rise 20% in each of the next 3 years. At the same time, it projects costs to rise 10% each year. If profit this past year was Rs 10Cr on revenue of Rs 100 Cr, what will be the accumulated profit at the end of the 3rd year?
Solution
✅ Correct Option: 1
Given: Revenue Cr, Profit Cr
Cost Cr
Revenue grows at per year, Cost grows at per year.
Year 1:
Revenue
Cost
Profit
Year 2:
Revenue
Cost
Profit
Year 3:
Revenue
Cost
Profit
Accumulated Profit
Cr
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