Cadbury plc is a global confectionery company. Cadbury is forecasting its financial statements for Year 9. Selected financial information for Years 7 and 8 is provided in the table. In Year 8 Cadbury is planning to invest £300 million in CAPEX

The average depreciation rate is 10%. What is the forecasted depreciation expense in Year 9?

Selected Financial Information
Cadbury Inc (£ millions)
Year 7 Year 8
PP&E 1,904 1,761
Depreciation 196
CAPEX 53

A) £176
B) £206
C) £286
D) £300
E) £322

B