Apple limited has decided to invest in earth moving equipments which cost 550000. the company can take it on lease of 7 years at 90000 pa payable in advance. Or it can borrow 6 years under straight line depreciation method. Asset useful life is 7 years, the terminal year asset will be sold for 40000, tax rate 30%, what will be amount contained in loan installement in 6th year
April 10, 2020
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Mehta and Mehta has 500000 availablel to invest , also 4 projects to choose from , the Cost, NPV, PI of all projects are as follws: Project 1:- 300000, 60000, 1.20; Project 2. :- 100000, 40000, 1.4, Project 3:- 200000, 50000, 1.25, Project 4:- 150000, 45000, 1.30. What is maximum NPV a company can generate post investment
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