Q1.ARR Tulsian Ltd. provides you the following information:1. Purchase Price of each Machine1. Working Capital3. Useful Life of each machine4. Estimated Salvage Value at the end of useful life5. Method of Depreciation6. Tax Rate7. Earning before depreciation & tax:Rs. 6,00,000Rs. 3,00,0005 yearsRs. 1,00,000Straight line30%MMachineYear 1Year 2Year 3Year 4Year 5Machine X3,00,0003,00,0001,00,0004,00,000Required: Suggest which of the above machines aboutt3,00,0002,00,0003,00,0003,00,0003,00,0002,00,000Machine YMachine Z3,00,00012,00,0005,00,000Rate of Return MoshadYou are required to suggest which of the three machines should the company go for onthe basis of :A. ARR methodB. Payback period method

ARR is accounting rate of return, is a ratio of average profit and initial investment. Payback…

Q1. ARR Tulsian Ltd. provides you the following information: 1. Purchase Price of each Machine 1. Working Capital 3. Useful Life of each machine 4. Estimated Salvage Value at the end of useful life 5. Method of Depreciation 6. Tax Rate Rs. 6,00,000 Rs. 3,00,000 5 years Rs. 1,00,000 Straight line 30% 7. Earning before depreciation & tax: Machine Year 1 Year 2 Year 3 Year 4 Year 5 Machine X Machine Y Machine Z 3,00,000 3,00,000 1,00,000 4,00,000 Required: Suggest which of the above machinee abo 3,00,000 2,00,000 3,00,000 3,00,000 3,00,000 2,00,000 3,00,000 12,00,000 5,00,000 Rate of Return dnskad You are required to suggest which of the three machines should the company go for on the basis of : A. ARR method B. Payback period method

Q1. ARR Tulsian Ltd. provides you the following information: 1. Purchase Price of each Machine 1. Working Capital 3. Useful Life of each machine 4. Estimated Salvage Value at the end of useful life 5. Method of Depreciation 6. Tax Rate Rs. 6,00,000 Rs. 3,00,000 5 years Rs. 1,00,000 Straight line 30% 7. Earning before depreciation & tax: Machine Year 1 Year 2 Year 3 Year 4 Year 5 Machine X Machine Y Machine Z 3,00,000 3,00,000 1,00,000 4,00,000 Required: Suggest which of the above machinee abo 3,00,000 2,00,000 3,00,000 3,00,000 3,00,000 2,00,000 3,00,000 12,00,000 5,00,000 Rate of Return dnskad You are required to suggest which of the three machines should the company go for on the basis of : A. ARR method B. Payback period method

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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