T.K. Company Limited intends to set up a fruit processing plant in Mukono. It is estimated that
Fantastic news! We've Found the answer you've been seeking!
Question:
T.K. Company Limited intends to set up a fruit processing plant in Mukono. It is estimated that the investment will cost Shs.1600m. Depreciation will be 20% on a straight line basis over 6 years of useful life of the plant. Tax is 15% per Anum of the profit. The projected earnings are before depreciation and tax are: -
Year Profits before tax
1 20m
2 40m
3 50m
4 60m
5 30m
6 80m
Determine the Average Rate of Return (ARR) for the project
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
Posted Date: