Question

A machinery cost 20,00,000 and it is expected to yield a profit after depreciation but before loss is 2,50,000. Depreciation rate is 10 percent on straight line method, and company tax rate is 50 percent, calculate the pay back period.

Answer 1

Answer:

A machinery cost 20,00,000 and it is expected to yield a profit after depreciation but before loss is 2,50,000. Depreciation rate is 10 percent on straight line method, and company tax rate is 50 percent, calculate the pay back period.

Explanation: