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Initial cost of the machine TK 65000 working capital is tk 8000 the savage value is tk 5000 useful life 5 years tax rate 21%
Initial cost of the machine TK 65000
working capital is tk 8000
the savage value is tk 5000
useful life 5 years
tax rate 21%
cash flows before tax are as follow:
| year | CFBT |
| 1 | 18000 |
| 2 | 22200 |
| 3 | 17500 |
| 4 | 19100 |
| 5 | 21000 |
Depreciation has been charged on a straight line basis.
Requred: PBR and ARR (CO 3)
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