Capital budgeting

The cash flows of three mutually exclusive alternative as shown in table. the study period is five year and imputed market value should be used to adjust cash flow. the MARR 12% 

    Alternative A Alternative B Alternative C
         
Cash out flow(Investment)   98600 115000 81200
         
Annual Income    19500 26000 17500
         
 Salvage value   4000 27000 6000
         
useful life   9 year 5 year  7 Year

 

Using External Rate of return method determine best alternative

Replies (1)

Please reply ASAP

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 08 July 2026
Article internship

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
ARTICLESHIP 15 July 2026
CA Articles

Kinjal H Shah & Co.

Mumbai

CA Foundation

View Details
Company
13 July 2026
AVP / VP - PCG Advisory

Workforce Connect

Mumbai

MBA

View Details
Company
06 July 2026
Senior Accountant

Arvindkumar Maniar & Co.

Rajkot

CA

View Details
Company
16 July 2026
Manager - Finance & Accounts

Aliens Group

Hyderabad

CA Final

View Details
Company
20 July 2026
Senior GST Executive

Chandak Agarwal & Co

Mumbai

Graduate (Any)

View Details
Company
14 July 2026
Senior Executive/ Manager

H S SHARMA AND CO

Pune

CA Final

View Details
Company
23 July 2026
Senior Accountant

Felicity Adobe LLP

Bengaluru

CA Inter

View Details