18.A. Evaluate the capital budgeting method for analysis with suitable examples.(10 MARKS) B.The...
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Accounting
18.A. Evaluate the capital budgeting method for analysis with suitable examples.(10 MARKS)
B.The cost of a plant is Rs. 5,00,000. It has an estimated life of 5 years after which it would be disposed off (scrap value nil). Profit before depreciation, interest and taxes (PBIT) is estimated to be Rs. 1,75,000 p.a. Evaluate the yearly cash flow from the plant. Tax rate 30%.(5 marks)
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