A company invests Rs.50 thousand in assets The initial investment is Rs.30 thousand with two subsequent investments of Rs.10 thousand
Q. A company invests Rs.50 thousand in assets. The initial investment is Rs.30 thousand with two subsequent investments of Rs.10 thousand each at the end of 1st year and 2nd year. The useful life of the assets is 10 years with no salvage value at the end. If the interest rate is 10% and the minimum attractive rate of return (MARR) is 12%, the annual capital recovery and return (CRR) in thousands of Rs. is
| (A) 8.38 | (B) 7.06 | (C) 5.74 | (D) 3.10 |
Ans: 8.38
Sol:
Po = Rs. 30 thousand, r = 10%, P1 = Rs. 10 thousand, P2 = Rs. 10 thousand, i = 12%
