Question

17.
A company is considering the purchase of a new
machine. Two alternative machines (X and Y)
have been suggested, each having an initial cost of
Rs.20,00,000
and requiring Rs.1,00,000
additional Working Capital at the end of 15 year.
Earnings after taxation are expected to be as
follows:
Year
Cash Flows
as
Machine X Machine Y
1
2,00,000
6,00,000
8,00,000
2
6,00,000
3
8,00,000
10,00,000
4
12,00,000
6,00,000
8,00,000
4,00,000
The company has target rate of return of capital of
10% and on this basis, you are required to prepare
the profitability of the machines and state which
alternative you are consider financially preferable
using NPV Method.​

Answer 1

Answer:

the mask of a company must be equal to the property of its

80000+6000000=12000000

the scale must be equal to the production of it