Question

A doll manufacturing company is thinking of purchasing a new machine

which would cost Rs.20,000 and would last for 4 years. Its expected

salvage value is zero. The company expects to sell 10,000 doll every year

at a price of Rs.4 per doll and cash expenses will be Rs.1 per toy. The

company pays 55% income tax on its income. Determine the cash

inflows after tax (CFAT). Depreciation is on Straight line basis.​

Answer 1

Answer:

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