From the following details,The net profit before interest and tax is..

Net Profit after tax is ₹60,000

10% Long-term debt ₹10,00,000

Tax rate 40%

₹2,00,000

The correct answer is option 3- ₹2,00,000.

* Net profit after tax = 60,000

10% Long-term debt ₹10,00,000

Tax rate = 40%
Profit before tax = 60,000 x 100/60
                        = ₹1,00,000

Interest on debt = 10,00,000 x 10/100
                        = 1,00,000

So profit before interest & tax = 1,00,000 + 1,00,000
                                            = 2,00,000