Question

Q. 21. Two proposals X and Y are under consideration before the management of
Young India Ltd. Following informations are available :
Machine X
Machine Y
Initial Investment ()
Economic Life
1,00,000
1,00,000
10 Years
10 Years
Salvage Value
Zero
10,000
Cash inflows for machine X is 20,000 per year to its life and for machine Y is
30,000 for first five years and 25,000 for the rest five years.
Calculate average rate
of return on (a) Initial Investment and (b) Average Investment.​

Answer 1

Answer:

...............................................................................