Interested to Buy Any Domain ? << Click Here >> for more details...
Answer Posted / srikar
gradually reduces the value of goodwill and tangible assets
| Is This Answer Correct ? | 1 Yes | 0 No |
Post New Answer View All Answers
DHPL is a small sized firm manufacturing hand tools. It manufacturing plan is situated in haryana. The company's sales in the year ending on 31st march 2007 were Rs.1000 million(Rs.100 crore) on an asset base of Rs.650 million. The net profit of the company was Rs.76 million. The management of the company wants to improve profitability further. The required rate of the company is 14 percent.The company is currently considering an investment proposal. One is to expand its manufacturing capacity. The estimated cost of the new equipment is Rs.250 million. It is expected to have an economic life of 10 years. The accountant forecasts that net cash inflows would be Rs.45 million per annum for the first three years, Rs.68 million per annum from year four to year eight and for the remaining two years Rs.30 million per annum. The plant can be sold for Rs.200 million: (a) The company can borrow funds from a nationalized bank at the interest rate of 14 percent for 10 years. It will be required to pay equal annum installment of interest and repayment of principal. (b) A financial institution has offered to lend money to DHPL at 13.5 per annum but it needs to pay equated quarterly installment of interest and repayment of principal. Questions: (1) Should the company expand its capacity? show the computation of NPV. (2) What is the annual installment of bank loan? (3) calculate the quarterly installment of the financial institution loan. (4) should the company borrow from the bank of from the financial institution?
what is t code of all expences general legder?
how calculate intrest on advance tax ? and penalty on vat?
What are its characteristic features of financial accounting?
What is the provision? What is the entry for provision?
what is basic general accounting.
How to treat company managers personal expenses met by company if he is not taking salary from company and in future salary will be payable after deducting all personal expenses (salary amt will be decided only at paying year). pass journal entries
Do you know any other accounting application?
What are mis reports?
What is the difference between inactive accounts and dormant account?
What is the tds effect in balance sheet if tds receipts?
Define partitioning in accounting?
how to record the full and final settlement of employee (salary payable,other payable,,....) when he leaves the company ? or how to pass the entry for that ?
whats the sales tax slab and company's turnover professional tax slab
WHAT IS THE PORTFOLIO MANAGMENT SCHEMES ? ITS WHICH TYPES INCOME ?
