Accountancy, asked by Mrlspn8393, 1 year ago

A certain project has an initial cost of rs. 20 million & an annual maintenance cost of rs. 500000 over a 50 years life. The discount rate is 6%. The annual benefits received from the project increase linearly from rs.400000 for the 1 st year to rs. 2 million at the end of 20 years and remains constant thereafter till 50 years. The total benefits obtained for the period of 20 years starting from the 11-th year to the 30-th year are directly utilized in repaying the loan taken (which is equal to the initial cost of the project) from a bank at 10% compound interest. What will be the total amount remaining to be repaid to the bank at the end of 30 years? If it takes another 10 years to make the repayment in equal annual instalments, find the annual repayment amount. Also, determine the net benefit-cost ratio of the project at the end of the 50-year life.

Answers

Answered by silvershades54
1

Answer:

The annual benefits received from the project increase linearly from rs.400000 for the 1 st year to rs. 2 million at the end of 20 years and remains constant thereafter till 50 years. The total benefits obtained for the period of 20 years starting from the 11-th year to the 30-th year are directly utilized in repaying the loan taken (which is equal to the initial cost of the project) from a bank at 10% compound interest. What will be the total amount remaining

Answered by rosoni28
9

A certain project has an initial cost of rs. 20 million & an annual maintenance cost of rs. 500000 over a 50 years life. The discount rate is 6%. The annual benefits received from the project increase linearly from rs.400000 for the 1 st year to rs. 2 million at the end of 20 years and remains constant thereafter till 50 years. The total benefits obtained for the period of 20 years starting from the 11-th year to the 30-th year are directly utilized in repaying the loan taken (which is equal to the initial cost of the project)...

72 YEARS ND 3 MONTS ND 45 DAYS TOOK FOR IY

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