A company has two alternative proposals. Cost of the machine Estimated life Estimated sales p.a. Costs...

 

Transcribed Image Text:

A company has two alternative proposals. Cost of the machine Estimated life Estimated sales p.a. Costs Material Labour Variable Overheads The details are as follows: Proposall Automatic Machine Rs. 2,20,000 5½ years Rs. 1,50,000 50,000 12,000 24,000 Proposal II Ordinary Machine Rs. 60,000 8 years Rs. 1,50,000 50,000 60,000 20,000 Compute the profitability of the proposals under the return on investment method. 24-Sen-231 A company has two alternative proposals. Cost of the machine Estimated life Estimated sales p.a. Costs Material Labour Variable Overheads The details are as follows: Proposall Automatic Machine Rs. 2,20,000 5½ years Rs. 1,50,000 50,000 12,000 24,000 Proposal II Ordinary Machine Rs. 60,000 8 years Rs. 1,50,000 50,000 60,000 20,000 Compute the profitability of the proposals under the return on investment method. 24-Sen-231

Answer rating: 100% (QA)

To compute the profitability of the proposals under the return on investment ROI method you can use ... View the full answer