HI FRIENDS,
I am very much confused about thisquestion, can anyone try to solve this question
A company has to make choice between buying of two machines.machine A would cost Rs1,00,000 and require cash running expenses of Rs32,000 pa. Machine B would cost Rs1,50,000 and its cash running expenses would amount to Rs20,000 pa.Both the machine have a life of 10Year with zero salvage value.the company follows straight line method of depreciation and is subject to 50% tax on its income.The company`s required rate of returnis 10% which machine should it buy.NOTE:present value of Re1 per annum for 10%discount rate is 6.1446
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