During 2022 the management of Capri Limited considered the acquisition a new machine for purchase and installation during the second quarter of 2024 with a desired rate of return of 15%. The machine will cost R6 000 000 excluding import duties of R250 000 and will have a useful life of five years. The machine is expected to increase cash inflows by R2 000 000 per year but cash expenses will increase by R300 000 per year. Depreciation is calculated using the straight-line method. calculate depreciation
During 2022 the management of Capri Limited considered the acquisition a new machine for purchase and installation during the second quarter of 2024 with a desired rate of return of 15%. The machine will cost R6 000 000 excluding import duties of R250 000 and will have a useful life of five years. The machine is expected to increase cash inflows by R2 000 000 per year but cash expenses will increase by R300 000 per year. Depreciation is calculated using the straight-line method. calculate depreciation
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:During 2022 the management of Capri Limited considered the acquisition a new machine for purchase and
installation during the second quarter of 2024 with a desired rate of return of 15%. The machine will cost R6
000 000 excluding import duties of R250 000 and will have a useful life of five years. The machine is
expected to increase cash inflows by R2 000 000 per year but cash expenses will increase by R300 000 per
year. Depreciation is calculated using the straight-line method. calculate depreciation
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