Ami Ltd. is considering purchase of a Machine which is available at price of Rs.30 Lakhs. Assume discounting factor as 12% per annum. Calculate Payback Period and Discounted Payback Period for the project. Further details regarding the model are as follows.
Ami Ltd. is considering purchase of a Machine which is available at price of Rs.30 Lakhs. Assume discounting factor as 12% per annum. Calculate Payback Period and Discounted Payback Period for the project. Further details regarding the model are as follows.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Ami Ltd. is considering purchase of a Machine which is available at price of Rs.30 Lakhs. Assume discounting factor as 12% per annum. Calculate Payback Period and Discounted Payback Period for the project. Further details regarding the model are as follows.
Particulars |
Rs. In Lakhs |
|
Economic Life (in Years) |
6 |
|
Scrap Value at the end of Economic Life |
2.50 |
|
|
Year |
Profit After Tax |
1 |
6.00 |
|
2 |
8.00 |
|
3 |
10.00 |
|
4 |
12.00 |
|
5 |
10.50 |
|
6 |
9.50 |
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