Cost And Management AccountancyTU Board 2019
Super shine company ltd. Is thinking about an investment on the following: Cost of electric machineRs 1,400,000Installation costRs 50,000Life of a machine5 yearsBook salvage valueRs 80,000Cash…
10Super shine company ltd. Is thinking about an investment on the following: Cost of electric machineRs 1,400,000Installation costRs 50,000Life of a machine5 yearsBook salvage valueRs 80,000Cash salvage valueRs 50,000Operating expenses per year is estimatedRs 2,50,000Machine produces11,000 units per yearSelling price per unitRs 85Corporate tax rate25 %Cost of capital10 % Required: a. Net cash outlay b. Annual depreciation amount c. Annual Cash flow after tax d. Final year's cash flow after tax e. Net present value and desirability of machine
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