Question
Raman Ltd. is evaluating a new machine costing ₹60
lakhs with a useful life of 5 years. The expected annual operating cash inflows (after-tax) are ₹18 lakhs. The machine will be depreciated straight-line to zero but will have a salvage value of ₹10 lakhs at the end of 5 years. The company’s tax rate is 30%, and the cost of capital is 12%. The present value factors (12%) for 5 years are: Year 1: 0.893, Year 2: 0.797, Year 3: 0.712, Year 4: 0.636, Year 5: 0.567 PV of ₹1 after 5 years = 0.567 Cumulative PV factor = 3.605 What is the NPV of the project?Solution
Annual inflows = ₹18L for 5 years PV of inflows = 18 × 3.605 = ₹64.89L Tax on salvage = ₹10L × 30% = ₹3L → Net Salvage = ₹7L PV of Salvage = 7 × 0.567 = ₹3.969L Total PV = 64.89 + 3.969 = ₹68.86L NPV = 68.86 – 60 = ₹8.86L
The genetic constitution of a character present in chromosome/nucleus is known as
Which of the following is main objective of puddling in paddy?
Which of the following schemes promotes Organic farming through the adoption of the organic village by cluster approach.
When is dehaulming done in potato crop?
Which of the following is a viviparous insect?
Why is replication important in experimental design?
Under a single cropping pattern, it is normally recommended to consider __hp of tractor for every___ hectares of land.
The normal titratable acidity in fresh cow milk is :
Which part of the insect's body is often fused with the head to form the cephalothorax?
A minimum of how many satellites would required to cover the entire agricultural area of india under the “ Bharat Krishi Satellite Programme”?
