ITPEC FE Morning October 2023 Question 61
ITPEC FE Morning October 2023 — Question 61 of 80
Given:
- Device A: investment = 90, payout period = 3 years → min annual profit = 90 ÷ 3 = 30
- Device B: investment = 300, payout period = 5 years → min annual profit = 300 ÷ 5 = 60
Ratio: B / A = 60 / 30 = 2, so B must generate twice the annual profit of A.
Why not others:
- (a) Wrong — 30 ≠ 60, the required profits differ
- (b) Wrong — A (30) is not twice B (60); it's the reverse
- (c) Wrong — 1.5× would mean 45, not 60
Key rule: Min annual profit = Investment ÷ Payout period; compare the results directly.
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