Question
Epsilon Corp is considering a project: Initial Investment: Rs.6,00,000 Project Duration: 5 years, zero residual value Profits after depreciation but before tax: Rs. 1,50,000, Rs.
Epsilon Corp is considering a project:
•Initial Investment: Rs.6,00,000
•Project Duration: 5 years, zero residual value
•Profits after depreciation but before tax: Rs. 1,50,000, Rs. 1,80,000, Rs. 1,20,000, Rs. 1,00,000, Rs. 90,000
•Depreciation: 15% annually
•Tax Rate: 28%
•Tasks:
1.Payback Period (PBP)
2.ARR
3.NPV at 10% discount rate
4.IRR
5.PI
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
