A) What should be the amount to be invested :

i) To receive Rs 2,00,000 per annum in perpetuity at an interest rate of 8 %.

ii) In addition to conditions of point (i) above, if growth rate of 3% is expected every year.

to receive Rs 4,00,000 per annum in perpetuity at an interest rate of 5 %.

B) Calculate the current ratio and Acid Test Ratio with the following information -

Debtors = 500,000

Cash & Bank = 200,000

Inventory = 400,000

Trade Payables = 150,000

Bank OD = 50,000

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Sure lets proceed with the calculations for both A and B A i To receive Rs 200000 per annum in perpe... View the full answer