Question

A machine costs Rs.25,000. It will yield cash profit of Rs.7500 p.a for the next 5 years. If the

interest rate is 18% p.a., would you consider investing in the machine?​

Answer 1

If company wants to ... As the cost of the equipment according to "A" is Rs.70,000, it's Payback period ... than 5 years as this figure falls between cumulative cash inflows after tax for ... Interest on reinvestment.