Decision making


This query is : Resolved 

27 December 2010 I want to know which fixed asset to buy. There are two alternatives: 1st price of FA is 91000 with salvage value after 3 years is 27000 & 2 Price of FA is 57000 with salvage value after 3 years is 5000. Rate of depri is 20% writtern down. Can any one tell me which asset to buy with detailed working. Disount factor 9%

28 December 2010 Your question is incomplete. you need to give the expected cash flow details for each of the machine in question. There has to be a reason for such a huge difference in prices of these machines considering they are for same purpose.

If no further details are available, it makes sense to go with the 2nd machine as your immediate cash outflow is lesser.


You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now



Similar Resolved Queries


loading


Unanswered Queries



CCI Pro



Answer Query



Company
ARTICLESHIP 11 July 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
14 July 2026
Senior Executive/ Manager

H S SHARMA AND CO

Pune

CA Final

View Details
Company
31 July 2026
Senior Accountant - Bunia, Democratic Republic of Congo

AD GLOBAL LTD

Mumbai

B.Com

View Details
Company
16 July 2026
Manager - Finance & Accounts

Aliens Group

Hyderabad

CA Final

View Details
Company
28 July 2026
Senior accountant

RJ Public School

Bengaluru

B.Com

View Details
Company
Featured 18 July 2026
CA Articleship

apricus india

Mumbai

CA Inter

View Details
Company
29 July 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
22 July 2026
Senior Chartered Accountant

SKSS

Patna

CA

View Details
Follow