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compute & analyse cash flow to advice which option is better pls respond asap ABC Ltd is considering a proposal to acquire a machine costhg
compute & analyse cash flow to advice which option is better
pls respond asap
ABC Ltd is considering a proposal to acquire a machine costhg Rs 1,10,000 payable Rs 10,000 down and balance payable in 10 annual equal Instalments at the end of each year, Inclusive of interest chargeable at 5%. Another option before it is to acquire the asset on a les rental of Rs 15,000 per annum payable at the end of each rear for 10 years. The following information is also available Terminal scrap value of Rs 20,000 is realizable, if the asset is purchased. The company provides 10% depreciation on straight line method on the original cost. Income tax rate is 5096Step by Step Solution
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