Question: ABC Ltd. Is selling its products on credit basis and its customers are associated with 5% credit risk. The annual turnover is expected at `

ABC Ltd. Is selling its products on credit basis and its customers are associated with 5% credit risk. The annual turnover is expected at ` 5,00,000 if credit is extended with cost of sales at 75% of sale value. The cost of capital of the company is 15%. Calculate the net profit of the company.

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