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asap All questions carry equal NSTRUCTIONS: Q.No. 1 A company is considering a new project for which the investment data are as follows: Capital outlay
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All questions carry equal NSTRUCTIONS: Q.No. 1 A company is considering a new project for which the investment data are as follows: Capital outlay Rs 200,000 Depreciation 20% p.a. Forecasted annual income before charging depreciation, but after all other charges are as follows: Year! Rs 1,00,000 2 1,00,000 3 80,000 4 80,000 5 40,000 Total 4,00,000 On the basis of the available data, set out calculation, illustrating and comparing the following methods of evaluating the return: (a) Payback period. (b) Rate of return on original investment, and (c) IRR. maintained this pavout ratio for several years. The All questions carry equal NSTRUCTIONS: Q.No. 1 A company is considering a new project for which the investment data are as follows: Capital outlay Rs 200,000 Depreciation 20% p.a. Forecasted annual income before charging depreciation, but after all other charges are as follows: Year! Rs 1,00,000 2 1,00,000 3 80,000 4 80,000 5 40,000 Total 4,00,000 On the basis of the available data, set out calculation, illustrating and comparing the following methods of evaluating the return: (a) Payback period. (b) Rate of return on original investment, and (c) IRR. maintained this pavout ratio for several years. TheStep by Step Solution
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