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Question - A finance consulting company received an investment of 5 crore to develop a mutual fund application. After consultation, the company decided that it will need 3 crore and a year to develop the app, including designing, app maintenance, play store cost and integration, implying a profit of 2 crore. After 6 months and spending approximately 1.5 crore, the developers realised that there is an issue with the main framework of the Java application whose rectification will cost an additional 1 crore, thus reducing the profit to 1 crore. Should the company decide to cancel the project or continue it with rectification?
Financial Statement Analysis and Preparation
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