a$)$ What should be the amount to be invested:

i$)$ To receive Rs$.2,00,000$ per annum in perpetuity at an interest rate of $8\%.$

ii$)$ In addition to conditions of point $($i$)$ above, if a growth rate of $3\%$ is expected everyyear.

To receive Rs$.4,00,000$ per annum in perpetuity at an interest rate of $5\%.$

$(5$ marks$)$

b$)$ Calculate the current ratio and Acid Test Ratio with the following information

$(5$ marks$)$

Debtors

Cash and Bank

Inventory

Trade Payables

Bank OD

$500,000$

$200,000$

$400,000$

$150,000$

$50,000$