LS2501: A company proposes to install a machine involving a Capital Cost of Rs. 3,60,000. The life of the machine is 5 years and its salvage value at the end of the life is nil. The machine will produce the net operating income after depreciation of Rs. 68,000 per annum. The Company’s tax rate is 45%. The Net Present Value factors for 5 years are as under:

$1.99

SKU: 8c794278d5e4

Downloadable Assignment Solution

Buy this solution and download mba assignment solution instantly after secured paypal payment.

Question: A company proposes to install a machine involving a Capital Cost of Rs. 3,60,000. The life of the machine is 5 years and its salvage value at the end of the life is nil. The machine will produce the net operating income after depreciation of Rs. 68,000 per annum. The Company’s tax rate is 45%. The Net Present Value factors for 5 years are as under:

You are required to calculate the internal rate of return of the proposal.

 


Complete MBA Assignments Solution

You can buy complete assignment solution. Visit yours university link from top menu and buy online. You can also post your assignment requirement through email, so our expert assignments tutor will solved your problem.

Become Premium Member

30 Days Validity – Rs. 2,000/- Only. Buy MBA Assignment Membership.

3 Months Vailidy – Rs. 5,000/- Only. Buy MBA Assignment Membership.

1 Year Validity – Rs. 10,000/- only. Buy MBA Assignment Membership.

Study Link

You can study this assignment question from this link. Visit Now for MBA Assignment

Answer Blurr Actual Answer after purchase