economic life of the generator.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Alpha Castings Private Limited,a
small scale industry purchases a
generator for Rs. 20,000. The
operation cost is Rs 2000 during the
first year of its operation and it is
increases by Rs 1000 every year
thereafter. The maintenance cost is
Rs. 200 during the first year of its
operation and it is increased by Rs.
100 every year thereafter . The
purchase of this generator is through
an interest free loan sanctioned for
this company by Small Scale industry
Development Corporation. Find the
economic life of the generator.
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