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%Solution
Initial investment = Cost of machine + installation charges + working capital Initial investment = 55,12,000
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