A company wants to purchase a plant for its expanding operations. The desired plant is available at

Question:

A company wants to purchase a plant for its expanding operations. The desired plant is available at ₹3,00,000 in cash or ₹4,50,000 to be paid in 5 equal annual instalments due at the end of each year. Assuming the required rate of return of 15 per cent, which option should the company exercise?

Ignore taxes.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: