Question

Q3 : A limited is considering to Invest in a project require Initial investment of Rs: 2,00,000/- the
following income is before depreciation & tax as follows: Tax 50% Depreciation is on Straight
Line Basis on cost of the project. Scrap value Rs-20,000
Years
Profit
1
1,00,000
2
1,00,000
3
80.000
4.
80,000
5
90,000
Calculate :1. Payback Period
3. Net Present Value 10% factor and
2. Average Rate of Return
4. Profitability Index 10% PV factor.
Q:4. XYZ Company want to purchase a Machinery which require an Investment of 30,000/- has
an life of 5 years. The following net profit before tax as follows.
The present value factor @ 12% and Tax is 40%
(15)
Calculate: 1) Pay-back Period 2) ARR 3) NPV 4)Profitability Index
Years
1
2
3
4
5 5
Profit P(A)
22000
17000
25000
28000
30000​

Answer 1

Answer:

this is right answer mine also is this