Question
A firm is considering replacing its old machine with a
new one. Old machine: Book value = ₹8L, Salvage = ₹2L New machine: Cost = ₹20L, Life = 5 years Annual savings in operating cost = ₹6L Depreciation on new machine: Straight-line to zero Tax rate = 30%, Discount rate = 10% Should the firm go for replacement? (Use PVAF 10%, 5 years = 3.791)Solution
Annual savings after tax = ₹6L × (1 – 0.3) = ₹4.2L PV of inflows = ₹4.2L × 3.791 = ₹15.92L salvage from old = 2L taxed → tax = ₹(2 – 0) × 30% = ₹0.6L So net inflow from old = ₹2 – 0.6 = ₹1.4L Net investment = 20L – 1.4L (realized from old) = ₹18.6L NPV = ₹15.92 – ₹18.6 = –₹2.68L
Statement
Only a few A is B
No B is C
Some C is D
Conclusion
I) All A can never be C
II) All B can b...
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All music are composers.
Some composers are lyrics.
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No Lamp are Light.
No Light are Bulb.
All Tube are Bulb.
Conclusions:
I. At least some Tube being Light i...
In the question below there are three statements followed by two conclusions I and II. You have to take the three given statements to be true even if t...
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Only a few radios are TVs
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All cables are TVs
Conclusion:
I. All laptop...
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All books are pages.
Some notes are books.
All assignments are notes.
Conclusions:
I. At least some p...
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No cup is plate.
Only a few plate is saucer.
Some saucer is spoon.
All spoon is juicer.
Conclu...
Statements-:
All pens are books.
All books are Laptop.
Some Laptop are Sticks.
Conclusions :-
I. Some Sticks are b...
Statements : All one are two.
All three are two.
...
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Some Chapter is Topic.
Only a few Topic is Paragraph.
Conclusions:
I. Some Chapt...
