Lahore traffic police collected Rs. 44,00,000/-in terms of fines for traffic violations in 2018.The maintenance and operating cost of e-challan system was Rs. 16,00,000 + 1977./-.The net profit has been split equally betweenthe company providing e-challan system andexcise department. Calculate the rate ofreturn over a 5-year period for the companythat paid for installation, operation andmaintenance of the e-challan system, if itsinitial cost was Rs. 8,00,000/- and the profitfor each of the 3 years is the same as it was in2018?

Calculating IRR using the CF in scientific calculator. CF0= -Initial investment CF1 to CF5= Profit…

Answered: excise department. Calculate the rate…

Business

Accounting

excise department. Calculate the rate of return over a 5-year period for the company

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Lahore traffic police collected Rs. 44,00,000/-
in terms of fines for traffic violations in 2018.
The maintenance and operating cost of e-
challan system was Rs. 16,00,000 + 1977./-.
The net profit has been split equally between
the company providing e-challan system and
excise department. Calculate the rate of
return over a 5-year period for the company
that paid for installation, operation and
maintenance of the e-challan system, if its
initial cost was Rs. 8,00,000/- and the profit
for each of the 3 years is the same as it was in
2018?

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