Question

Punj Llyod company is considering an investment in a project with a capital outlay of rupees 200000. D estimated annual income after depreciation but before tax is as follows.
Year. Amount
1year. 100000
2year. 100000
3year. 80000
4year. 80000
5year. 40000

Depreciation may be taken at 20% on original cost and taxation at 50% of net income.You are required to evaluate the project according to each of the following method.
1)ARR method
2)ARR (ROI) method
3)NPV method​

Answer 1

Answer:

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