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A company decides to buy a machine, the details of which are given below: Cost of machine Rs 15,00,000 Operations and Maintenance cost - Rs
- A company decides to buy a machine, the details of which are given below:
- Cost of machine Rs 15,00,000
- Operations and Maintenance cost - Rs 2,50,000 per year
- Savings in labor cost Rs. 6,00,000 per year
- Savings in space cost Rs 1,00,000 per year
- Cost of machine Rs 15,00,000
- Operations and Maintenance cost - Rs 2,50,000 per year
- Savings in labor cost Rs. 6,00,000 per year
- Savings in space cost Rs 1,00,000 per year
The machine would have an economic life of 5 years and will be depreciated at a rate of 20% on a written down value method. After 5 years, it will be disposed-off at a price equal to book value. Tax rate is 30%. Find the NPV at 12%.
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Labor and Employment Law Text and Cases
Authors: David Twomey
15th edition
978-1133188285
