Question

Alpha Ltd is considering the purchase a new machine, the details of the machines

from which it is to select one are as follows:

Machine I Machine II

Estimated Life 3 years 3 years

Capital Cost Rs. 90,000 Rs. 90,000

Earnings (after tax) Year 1 40,000 20,000

Year 2 50,000 70,000

Year 3 40,000 50,000

The company follows the straightline method of depreciation, the estimated salvage

value of both the types of machines is zero. You are to advise which is the most

profitable investment based on (i) Pay back period (ii) Accounting Rate of Return

and (iii) Net Present Value assuming a 10% cost of capital​

Answer 1

Answer:

• Soil is a material composed of five ingredients — minerals, soil organic matter, living organisms, gas, and water. Soil minerals are divided into three size classes — clay, silt, and sand (Figure 1); the percentages of particles in these size classes is called soil texture. ... Relative sizes of sand, silt, clay.

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