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Graphs and Tables | Re: A company is considering investing in one of two new products, product

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Sajjad1994 wrote:

bubuster171 wrote:
Kindly explain the firstquestion.


Statement1: The expected profits for product A are higher than those for product B in all three years, according to internal financial analysis.

We need to look at and compare second row and fifth row

Second row: Product A (Internal Financial Analysis)

A (Internal Financial Analysis)60000-50000=10000 80000-70000=10000100000-80000=20000

Profit for three years= 10000+10000+20000=40000

Second row: Product B A (Internal Financial Analysis)

A (Internal Financial Analysis) 45000-35000=10000 60000-50000=10000 80000-70000=10000

Profit for three years= 10000+10000+10000=30000

Hence40,000>30,000

Answer:Yes


“The expected profits for product A are higher than those for product B in all three years, according to internal financial analysis.”
I thought we would only compare year1, year2, year3 seperately. For example, A's profit in year 1 is 10000 which means the same but not higher than B's profit.
Profits in year 2 are also the
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Statistics : Posted by cathyjiang04 • on 23 Jan 2024, 04:37 • Replies 5 • Views 295



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