dcfox83

Thanks guys and thanks MFIN : i think you were dot point in removing my doubts. i CAN digest the fact now haha...i guess i would have to keep in mind that 'effective' cost to the firm is after it accounts for the tax shield/contribution. The word effective is the key. i.e. it is reducing the firm's cost as govt contributes or provides for part payment of the cost and hence the benefit...the book you mentioned and the concept you mentioned was very useful.

Thanks a bunch for sharing your intellect !! =)