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5 years The following details relate to two Machines X Model & Y Model. X Model Y Model Rs. Rs. 3.60.000 3.60.000 Cost Estimated Life
5 years The following details relate to two Machines X Model & Y Model. X Model Y Model Rs. Rs. 3.60.000 3.60.000 Cost Estimated Life 5 years 60.000 60.000 Estimated Salvage Value Annual Income after Tax & Depreciation: Year I 18.000 78.000 Year 11 33,000 63.000 Year III 48.000 48.000 Year IV 63.000 33.000 Year V 78,000 18.000 For X Model overhauling charges at the end of third year Rs. 1.20.000, Depreciation has been charged at 'straight-line method 1. Discounting Rate is 10%. Present Value Factor at 10% for five years are 0.909. 0.826: 0.751. 0.683 and 0,621 Suggest w a project should be accepted under Present Value Method
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