Question

X* is carrying on a business carning Rs. 50,000 as average profit on an investment
of Rs 3.00.000. Y* is interested in buying the business of X' on the basis of a
normal rate of retum of 1 Goodwill is agreed to be 4 purchase of the super profit
Nu is expected that in future, expense may go up by Rs. 5,000 per year due to a new
local tax Compute the poodwill payable to X.​

Answer 1

Answer:

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