Question

average profit earned by a firm is 100000 which includes undervaluation of stock of 40000 on an average basis the capital invested in the business is 630000 and normal rate of return is 5% calculate Goodwill of the firm on the basis of five time of super profit.​

Answer 1

here,

1. you have to calculate the avg. profit after other expenses.
2. then you have to calculate expected profit.
3. afterwards you have to subtract it from avg. profit.
4. then the answer of 3rd step is your supernormal profit.
5. now multiply it with 5...

Answer 2

Answer:542500

Explanation:this is correct answer