Question
Muller's investment appraisal committee have worked out the Net Cash flows in the working shown below. Additional details of the project are also given below.
Muller's investment appraisal committee have worked out the Net Cash flows in the working shown below.
Additional details of the project are also given below.
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|---|
| Net Cashflows | - 123,750.00 | 29,750.00 | 32,609.38 | 35,737.11 | 39,158.29 | 45,650.32 |
Additional Information
The cost of the machine is 123,750.00 with a residual value of 2,750
Muller prefer the straight-line method as a method of depreciation
For capital investment projects ABC Ltd uses a discount rate of 10% and 20% for their IRR calculations.
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Auditing Principles And Techniques
Authors: Prof. A.R. Solanki
1st Edition
9350533979, 9789350533970
