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Equpphent A has a post of Rs. 75000 and net cash fow of Rs. 20.000 per year, for six years. The usefut life of the
Equpphent A has a post of Rs. 75000 and net cash fow of Rs. 20.000 per year, for six years. The usefut life of the equepment is 6 years After 6 years it waryenpho saivage value. The required rate of return is 11%. You are tequired to compute the net present value (NFV) of this investment profect and suggest whether the equipnent should be purctused or not? [5)
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