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Calculate the value of goodwill of a company based on 2 years purchase of the super profit for the last 5 years. Given data Net

Calculate the value of goodwill of a company based on 2 years’ purchase of the super profit for the last 5 years.

Given data

Net Profit for

Year 1 - $50,000

Year 2 - $45,000

Year 3 - $50,000

Year 4 - $55,000

Year 5 - $60,000

The capital employed is $100,000 and normal rate of return is 6%.

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