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Question

Based on the following information- calculate the

initial investment in the project. Cost of machine = Rs. 54,00,000 Installation charges = Rs. 12,000 Sunk cost = Rs. 23,000 Working capital investment required at start= Rs. 1,00,000 Revenue from products at end of year 1 = Rs. 2,40,000 Tax rate = 12%

A 54,12,000

B 55,12,000

C 54,00,000

D 55,23,000

E 54,35,000

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