Break even point

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Naresh (Querist)

18 September 2014 Let me know BEP (in terms of period) with calculation for my investment of Rs.20.00 lakhs in a Project with interest rate 10% and depreciation rate is 20%. calculation under both (discounted and normal payback method) will help. Will depreciation here matter since I am not liable to pay Income tax ?

Thanks

DrSANGITA PHD MBA(usa)CACSCWA

DrSANGITA PHD MBA(usa)CACSCWA (Expert)

18 September 2014 You want the calculation on Discounted Pay Back, or Normal Pay Back.
Also the Scrap Value of Assets will be an Important Factor for calculation of the BEP/Pay Back Period

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Naresh

Naresh (Querist)

18 September 2014 BEP calculation under both (discounted and normal payback method) will help. Will depreciation here matter since I am not liable to pay Income tax ?

Thanks

DrSANGITA PHD MBA(usa)CACSCWA

DrSANGITA PHD MBA(usa)CACSCWA (Expert)

18 September 2014 As you said you would not be falling under Tax Net, then Depreciation would matter only for Cash Inflow Factor as depreciation is a Non cash Expenditure

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