Dear CCI friends....Plz solve this problem from Capital Budgeting " NPV " Method :
A Project costing Rs. 10,00,000 as life of 10 years at the end of which its scrap value is likely to be Rs. 1,00,000. The firms discount rate is 12%. The project is expected to yield an annual Profit After Tax Rs. 1,00,000. Depreciation being charged on Straight Line basis at 12% p.a. , the present value of Re. 1 received annually for 10 years is Re. 5.650 and the value of Re. 1 received at the end of 10th yer is Re.0.322. Ascertain the Net Value of the project and state whether you should go for the project ? Ans: NPV = 105000
( Friends Plz Plz solve this problem m not good in this chapter as am a self study student )
CAclubindia
