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
25.22% of (59.9 × 8.01) + 69.97 =?
30.05% of 360.05 – 25.15% of 99.99 × 3.02 = ?
What approximate value will come in place of the question mark (?) in the following question? (Note: You are not expected to calculate the exact value....
? * 4.89 = (410.15 ÷ 13.97) % of 6190 - 1342.77
14.96% of 120.03 - 107.99 + 88.93% of 199.87 = ?
√2401 × (√2116 ÷ 23) × 21 ÷ 3 = ?
1080.04 – 250.18 + 199.98 ÷ 20.06 = ?
1459.98 ÷ 40.48 × 12.12 = ? × 3.16
12.03 x 4.21 +19.95% of 300.05 = ?
