Question

Shri RamLtd is considering the
purchase of a new project with a
four-year life. The depreciable basis
is Rs 100.000 and requires Rs
20,000 of additional working capital.
The project will generate Rs 87,000
of additional revenue with Rs 50,000
of additional operating expenses for
each year of the four-year project.
The company is subject to a marginal
tax rate of 40%. The salvage value at
the end of the fourth year is
expected to be Rs 5,000. The initial
cash outflow for the project is closest
to which of the four suggested
answers below

a. R$ 1,20,000
b.Rs 1,00,000
c.R$ 26,466
d.You cannot determine the initial
cash outflow from this information​

Answer 1

Answer:

I think the correct answer is 100000