The new venture requires an import of equipment from the UK at the cost of Rs.1,000,000. Further, it will cost the company Rs. 200,000 for shipping charges, installation and testing the equipment, etc. There will be an increase of Rs. 500,000 in working capital if the company starts this project. The existing equipment is sold at Rs. 10,000 at the book value, means at no profit no loss. The operating profit excluding the tax depreciation is expected to be: Calculate the initial cash outflow
The new venture requires an import of equipment from the UK at the cost of Rs.1,000,000. Further, it will cost the company Rs. 200,000 for shipping charges, installation and testing the equipment, etc. There will be an increase of Rs. 500,000 in working capital if the company starts this project. The existing equipment is sold at Rs. 10,000 at the book value, means at no profit no loss. The operating profit excluding the tax depreciation is expected to be: Calculate the initial cash outflow
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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The new venture requires an import of equipment from the UK at the cost of Rs.1,000,000. Further, it will cost the company Rs. 200,000 for shipping charges, installation and testing the equipment, etc. There will be an increase of Rs. 500,000 in working capital if the company starts this project. The existing equipment is sold at Rs. 10,000 at the book value, means at no profit no loss. The operating profit excluding the tax depreciation is expected to be:
Calculate the initial
Please don't explain in excel
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