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Question: The following details relates to the two machines X and Y:
Annual income after tax and depreciation:
Overhauling charges at the end of third year Rs. 25,000 on machine X. Depreciation has been charged at straight line method. Discount rate is 10%? P.V.F. at 10% for five years are 0.909,
0.826, 0.751, 0.683 and 0.621. Suggest which project should be accepted.
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