Accountancy, asked by navukarasan2000, 4 months ago

M/s. Pandey Ltd. is contemplating to purchase a machine A and B each costing of Rs.5,00,000. Profits before depreciation are expected as follows: Year Cash Inflows Discounted Factor Machine A Machine B 10% Rs. Rs. 1 1,50,000 50,000 0.9092 2 2,00,000 1,50,000 0.8264 3 2,50,000 2,00,000 0.7513 4 1,50,000 3,00,000 0.6830 5 1,00,000 2,00,000 0.6209 Using a 10% discounted rate indicate which of the machine would be profitable using the Net Present Value (NPV) method.

Answers

Answered by Rahatnaaz17

0

Answer:

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Explanation:

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