Question

Why interest on drawing is taken 5.5 months in the end of every month

Answer 1

ABC Ltd. has to make a choice between two machines X and Y .THe two machines are designed differently, but have identical capacity and do exactly the same job. Machine X costs Rs, 150000 and will last for 3 years. It costs Rs 40000 per year to run. Machine Y is an economy model costing only Rs 100000 but will last only for 2 years, and cost Rs 60000 per year to run. The cash flows of machine X and Y are real cash flows

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Answer 2

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ABC Ltd. has to make a choice between two machines X and Y .THe two machines are designed differently, but have identical capacity and do exactly the same job. Machine X costs Rs, 150000 and will last for 3 years. It costs Rs 40000 per year to run. Machine Y is an economy model costing only Rs 100000 but will last only for 2 years, and cost Rs 60000 per year to run. The cash flows of machine X and Y are real cash flows