January 30, 2015

Homework Help: Accounts

Posted by Neeraj on Saturday, October 16, 2010 at 10:40am.

The following details relates to the two machines X and Y:

Machine X Machine Y
Estimated Life
Estimated salvage value
Working Capital required in the beginning Rs. 56,125 Rs.56,125
5 years 5 years
Rs. 3,000 Rs. 3,000
Rs.10,000 Rs. 20,000

Annual income after tax and depreciation:

Year Rs. Rs.
I 3,275 11,375
II 5,375 9,375
III 7,375 7,375
IV 9,375 5,375
V 11,375 3,375

Overhauling charges at the end of third year Rs. 25,000 on machine X. Depreciation has been charged at straight line method. Discount rate is 10%? P.V.F. at 10% for five years are 0.909, 0.826, 0.751, 0.683 and 0.621. Suggest which project should be accepted.

Answer this Question

First Name:
School Subject:

Related Questions

finance - Nucore Company is thinking of purchasing a new candy-wrapping machine ...
accounting - On January 1, 2004, Carnival Shipping bought a machine for $1,500,...
accounts - on july 01,2000, asok ltd. purchased a machine for Rs.1,08,000 and ...
Financial Management - The management of cooper Equipment is planning to ...
Accounting - Basic NPV: No Salvage Value or Taxes Carrie Rushing is considering ...
accounting - A company purchased a machine on January 1 of the current year for...
MATH - A company makes three products X, Y and Z. Each product requires ...
MATH- please help! - A company makes three products X, Y and Z. Each product ...
MATH-PLEASE HELPPP!!!! - A company makes three products X, Y and Z. Each product...
accounting - On January 1, 2006, Powell Company purchased a building and ...