Little doubt

Hey, Calculations such as these are approximations...Sometimes the answer changes with the type of calculator you use..so you need not worry about minor differences.

So these differences really don't matter na???

And yeah am I calculating right???

Yeah Urvashi.. Don't worry.. Such minor differences doesn't matter...

The calculations in the book were done as under:

=200000/82000*12

=29.268 ( It means 29 completed months and 0.268 month )

= 29 months is equal to 2 years and 5 months

=0.268 month is equal to 8 days (0.268x 30)

However you calculation basis is also correct.

Regds

casachingarg @ gmail.com

in your text book 

calculation made by assuming 360days p.year

then u will get exact answer

 2,00,00/- ///// 82,0000/- === 2.4390 YEARS

 .4390*360= 158.04/30 = 5.268

5.268 - 5 = 0268 * 30 = 8.04 DAYS

I THINK U SATISFIED WITH EXACT ANSWER AS TEXT BOOK

NOTE: BUT CALCULATION SHOULD BE MADE FOR 365 DAYS EXACTLY RIGHT ANSWER.

hi urvashi.........

This problem due to divided by you days into month (i.e. u divivded by 30), but month is of 28,30 and 31 also.

THANKS 

differnces in answer to the sum come due to rounding off,assumptions,etc..its a minor thing..not a prblm .. 

Again I trapped in my silly mistake... correct me please...

Purchase price of Machinery 10,00,000
Installation price 1,50,000
Book salvage value 10% of purchase price
And Useful life 5 years...

So depreciation must be amounted to???
210000 or 207000

In book its 100000... 
Q is about to find out Cash Inflow after tax (CFAT)... So should consider anything else...
Q. Calculate CFAT 
Purchase price of New Machinery                                                                   Rs. 10,00,000
Installation price                                                                                                    Rs, 1,50,000
Worker's training exp. incurred to put asset to use                                    Rs. 50000
Subsidy from Govt                                                                                                Rs. 60% of Purchase price
Working capital                                                                                                     Rs. 300,000
Useful life of machine                                                                                          5 yrs
Book salvage value                                                                                               10% of puchase price
Cash salvage value                                                                                                Rs. 120000
Method of Dep                                                                                                        SLM
Tax Rate                                                                                                                    30%

Iske agey selling price or variable cost hi di hai.. 5 saal ki.. different hai..

As per book 100000 hona chaiye.. and mera kal 100000 aya tha.. aaj nahi aa rha hai.... 

Purchace Machine cost    1000000

add :(150000+50000)=      200000

Total                                       1200000

Less Subsidy Govt.

(60% of 1000000)                 600000

Book cost                               600000  (1200000-600000)

Less salvage value 

(10% of 1000000)               100000

gross value                           500000

years                                      5

dep.                                          100000

Okazzz .. So i considered all these yesterday but forgot today..
Thanks... aise hi silly mistakes hote hai mujhse exam time me..
I'll remember this.. Thanks CCI hai... varna mere coachings bhi ni chal 
rhe and koi batane wale bhaiya didi bhi ni hai...