Example 20.6. Aplant requires further investment of Rs. 50,000. Other relevant data are furnished below- Rs. 15,000 Annual expenses on all heads Economic life Net salvage value Expected Annual revenue Analyse the above data on the basis of E.R.R. to suggest the viability of further investment if the rate of return should not be less than 10%. %3D = 8 years. %3D %3D Rs. 25,000 %3D

Example 20.6. Aplant requires further investment of Rs. 50,000. Other relevant data are furnished below- Rs. 15,000 Annual expenses on all heads Economic life Net salvage value Expected Annual revenue Analyse the above data on the basis of E.R.R. to suggest the viability of further investment if the rate of return should not be less than 10%. %3D = 8 years. %3D %3D Rs. 25,000 %3D

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter9: Capital Budgeting Techniques

Section: Chapter Questions

Problem 12PROB

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