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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 4 168 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. Purchase 1s 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-

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