Question
An asset bought at Rs.10 lakh was sold for Rs.4 lakh
after 3 years. What is the depreciation charged on the asset per year as per straight line method?Solution
Depreciation = (Cost – salvage value) / life of asset                        = (10 lakh – 4 lakh) / 3                        = 2 lakh Â
Reinvestment risk would not occur if:
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