1
Par 101 {AK PLANSONG -MASACERIAL DECISIONS rea | 16
Assets primed he ase cn depression Basen imurestoncapialberroned
XE ature tnd aie con soe csimedasdducinn K:bowere sacl] th
tenance om carbeciamed in respect of ase rentals andleasemanseement
os
casey Reagupneacese syne dataarbramade vio tepcete |e
ihren bcerstnracs4ctercae The |
elcome 03. Aono
{ a rine percaertsacg
Rooney se pe dep ae emer years nthe |x
\ Shines inp Ie eet cae Melee etahareaueratea ADOPT | sw
ater ian he met canes ere von is epeean eal RE Spe | 30
sun ort pri ne en eco LD waco tele |
UHI atons he ben sed 7
Iai enfin Tefoinngrsuisoncanchanontcbnist at | ya
tia pr 0} :
ran.es
rset wal low of sh when placed out om eds
| 00100]
(ys
Tice an a mie
‘Tsing: nace of epeeaon
| ui cash
Shanon Paras wk Drones To ian prcose of penand machinery oct
Son ae pts), 1500s oto atheatt een Weer SP
Cyt ld ner en. Te flowing revs ome can ota nthe bas ||
{tfomation presented in Table 3 (Para 10)
‘TABLES
Present ao ufo of cas whem plats purchased ott
of bored fds
Free worth fun saingson aon! of edt ander set 32
( worth af tial outiow principal aa interest net ft
utlow of as nef we)
‘Shatin 3 Taking aston lease Tole 6 presets dala Whe Plant is Obtained om lease from
'
¢
oa is '
apie
resent ve of diferent shot on sing ith own funds _
ae ee ene ee | emt |
a Pea [odtntitue | catouton | attrac,
Tone vee et ‘sts toca
ere) | rae pec
a [oe Pe ie |
Force Pt) | mo |B 27
tore sow | 8 ana
fice | = | sm} wo | [4
tate | = | 8
twa | — | @
‘wen | - |
pa |e es i
Loa a 4168 Lanse ruRCIASE
TABLE?
‘Present val o ferential ufos om purchase of pt and machinery
il rowed ads (Amount of vestments 100.000,
‘amount borrowed: Rs. 75000) =
Re
terme | - 25010 2500 2so0n
ere | or - ne sot
rerio | 0 - ss ae
varies | 6780 = ste as
erie | 670 - ss ss
rertne | “4n0 S us a
aru | x0 = saat 2a
verses | 6750 = sass ns
recent | 0 = ais. 2st
|rersne | at0 = aes ee
Jian | 6790 20 susie! oss
i a oi
eer worth R650 R266 + pte worth R 500: 2495,
2eapmctatuan(d
ano Re 266 +B. 28950.
‘TABLES
Comribton of deduction under secton 32 when bowrowed
uns are mvested i plant and machinery
(a rate: 34608 percent)
Foes wah oft olibw oe pnaplandintere ner fia we Tale®) | Re BLOT
1 rect wr f ta stings on acount doctoawde secon 324s Tabe | Rs 19184
wanewo ase
1m, With the concept of easing galing immense popularity in recent times, ey bases
Iicagemenis laced withthe chuiceo purchase asselsor to goin for easing the aset Ones
‘ole tsissue on economic conieration aking inn acount the diferent tax shield ets
Para 101
eae v.
Purchase1s dss PReHASE BY MSTALMEN. TRE Pera 102
wet concusion-Fromtbe abort woul evident ht purchase fant of barowed fund
we] iterate
ae 1. ten set pce by inane hn he aera im eect adr Pare
ttc] aE ao Sletten payeleon up paras pc cao eines dedusion- jouer
te] ten aie onsactenhradaduoncantecainedin respons hag ire
32 teeing pestle of enkolowsacorest den canbe ken
RE 9 at on ton compen, engaged in the sins of manfacure of aformers and Case sty
Boer) Siacht ans tps or king ania machine rm aconceninUK i
Sper | eee ee ten thle wl eR 69000 payable a ana terete)
ce) ee TDi cach the pens lo bemadeon July Lech year begining ith
ta asthe cn eX hasta aan et of Re. 8000 ao
at) eS eachyearsarniom hare yer 015 The company ropossto eth
ache for 10 years from 2015
The folowing assumptions have been made:
|The company isa widely bed company and tax rates 34608 per cet
ns | 2Rateot depreciation on machinery 5 perce.
imo] | 3.cost ot capitis assumed as 10 per cet
nae
“Thefallowing char highlights the tax iplation under the wo aeratvs
4 cng chart hhh te ; :
Hoan | Farivaetcatator en asst rm fens
sped || Geom) osam0
Tengo an ol eration BA8NoE Re ODIO
SEER es) couisiow
Pres a coat ssi
as | Preston outow nau of py fet te
jam) | memati onsaigon ecu of pm ot
a1 | | prs eofesbotion
CCoelusion: The machine shouldbe taken on i.
Note [Present value of cash outflow on account of payment finales
Tateima | maine — |
e oe
“July 1, 2015 1200900 |
saan sama
fine "a
yas rrr
raya ‘nano
0 Total o0000
‘ a . a
: Fos Tce oa aw ov act of ret oe aE
> || Cama moc ame) maaan i
7 10% 350088,
1 | Bs ® fe mes
: “Joly 1, 2015 80000 | 276864
wane soon 25140
yin tae te
sayin |i oa‘x PLAgnONG MANAGERIAL DECISIONS 168,
ay 2019 139058
saly220 ings
daly 221 6181
aos
ass
117390
Sale ofasets 108. Seepara 6
sed for
scientific
research
iakeor bay
Casestusy
14 Many coning or non-