Also, include a sensitivity analysis if Mr. Bansal decides to provide a fee reduction in the expected
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Question:
Also, include a sensitivity analysis if Mr. Bansal decides to provide
a fee reduction in the expected revenue for 5 years as follows:
Note: Use the following revised expected revenue structure with the fee reduction (all other assumptions remain the same as given in Exhibit 3). Fees are in Indian Rupees
Year 1 | Year 2 | Years 3-5 (per year) | |
Total strength | 35 | 50 | 80 |
New enrolments | 35 | 25 | 40 |
Returning | 0 | 25 | 40 |
Fees – New students (one time and annual) | 17,500 | 18,000 | 18,500 |
Fees – Returning students (annual) | 15,500 | 16,000 |
capital budgeting techniques. Assume the opportunity cost of capital is
12% (that is, 15% net of 20% tax).
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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