Name the following-- It is durable,more useful and has no added value.
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Answer:
Value of output = Sales +Δ in Stock
⟹ Value of Output =20+2
⟹ Value of Output =Rs.22 lakhs
Gross Value added at MP = Value of Output − Intermediate Consumption
Gross Value added at MP =22−5=Rs.17 lakhs
NVA
FC
=GVA
MP
− Depreciation − Net Indirect Tax
⟹NVA
FC
=17−(
No. of useful life in years
Cost of producer goods
)−(Indirect Tax - Subsidy)
⟹NVA
FC
=17−(
10
10lakh
)−(1−0)
∴NVA
FC
=Rs.17−1−1=15 lakhs
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