(a)[8]
Explain one effect on PF of the rise in each of the two taxes shown in Appendix 2. Tax on people’s income. Tax on profit made by businesses.
(b)[12]
Using Appendix 3 and the other information, consider PF’s financial position in 2025 and the forecast financial position in 2026. Do you think Philip’s sister should invest in PF? Justify your answer with suitable calculations.