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    Nazneen Sabina
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    accounting

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    5 views2 pages

    Accounting

    Uploaded by

    Nazneen Sabina

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 2
    i T 4223 i 0.909 354,510 2 | 0.826 2,06,500 | 3 | 0.751 247.830 4 0.683 286,860, 5 ee | 0.820 4,58,800 15,54,500 150,000 NPV= 295,500) | (iv) Profitability Index (PI) Calculation = pr 2=PV.of Cash Inflow 15,54,500 PV of Investment Cost ~ Tk. 18,50.000 = 0.84 Profit before depreciation and tax (PBDT) from the project is as below = Year PBDT I 45,000 2 35,000 3 25,000 4 50,000 5 45,000 ‘The policy of the company is to depreciate fixed asset on straight line basis over the period of the asset. Salvage value of the machine is expected to be Tk. 15,000. Assume a 30% tax rate and 2 cost of capital of 10%, Required : Determine the acceptability of the project of the basis of — {4 Payback period, (ii) Average rate of return, (iii) Discounted payback period, (iv) Net present value, (BDE, Part-I; Non, 2006] ‘The Sayeeda International Ltd. is consideing the expansion of business line, acquisition of a machine costing Tk. 165,000. The project is expected to survive fi which would require ive year. The expected Average inv ARR, Required Calculatior (¥) Profitability index. 1 ae Present Value of Tk. 1 at 10% 2 2 ee Ree ee | 3 4 I an | C 0.909. | tes 0751 T 0.683. I 4 | sel

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