August 2011
Beginner
547 pages
16h 12m
English
|
Cost of machine: |
Rs 10,00,000 |
|
Cost of transporting machine: |
50,000 |
|
Other installation expenses: |
20,000 |
|
Increase in net working capital: |
60,000 |
|
Cost of training personnel: |
20,000 |
|
Initial cost of advertisement: |
20,000 |
|
Tax rate: |
30% |
|
Solution |
|
|
(i) Installation of machine: |
Rs 10,70,000 |
|
(ii) Training cost: 20000 × (1−0.30) |
14,000 |
|
(iii) Increase in net working capital: |
60,000 |
|
(iv) Initial advertising cost: |
20,000 |
|
Total |
11,64,000 |
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