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1 Server Jute Expo is considering an uvestment proposal to install new machine costing tk 50,000 Salvage value tk 2500. The machine ltas a life
1 Server Jute Expo is considering an uvestment proposal to install new machine costing tk 50,000 Salvage value tk 2500. The machine ltas a life expectancy of five years and has no salvage value. Assume that the company uses straight line depreciation. The tax rate is 50 percent. After tax niet present value discount rate for the company is 10% The cash flow before depreciation is Tk 10,000, 11.000, 14,000. 15,000 and 25,000 for five years respectively Requirements: a) PBP, b) ARR. C) NPV) IRR , 15 1 Server Jute Expo is considering an uvestment proposal to install new machine costing tk 50,000 Salvage value tk 2500. The machine ltas a life expectancy of five years and has no salvage value. Assume that the company uses straight line depreciation. The tax rate is 50 percent. After tax niet present value discount rate for the company is 10% The cash flow before depreciation is Tk 10,000, 11.000, 14,000. 15,000 and 25,000 for five years respectively Requirements: a) PBP, b) ARR. C) NPV) IRR , 15
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