Question

7. Mahesh electronics company Itd is considering the purchase of a machine. Two
machines P & Q each costing Rs.50,000 is available. In comparing the profitability of
these machines a discount rate of 10% is to be used. Earnings after taxes are expected
to be as follows:
Year
Machine P
Machine 0
15,000
5.000
2
20,000
15,000
3
25,000
20.000
15,000
30.000
5
10,000
20,000
Evaluate the proposals under:
a) PBP
b) ARR
c) NPV
​

Answer 1

Answer:

its so long question bro

so I don't know bro sorry