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Example 15: k I wish to have a minimum rate of return of 10% per annum on my investment, which of the following two plans should be preferred: Plan A Plan B Initial cost in Rs. 40000 60000 Expected life in years 5 Salvage value in Rs. 4000 18000 Excess of annual receipts over disbursements in Rs. 8000 8000 8000 8000 8000 10000 8000 12000 8000 12000 (CRF-10%-5)=0.26380, (SFF--10%-5)=0.1638 (Pwf--10%-1)=0.9091 (Pwf--10%-4)=0.6830 (Pwf--10%-2)=0.8264 (Pwf--10%-5)=0.6209 (Pwf--10%-3)= .7513 1st year 2nd year 3rd year 4th year 5th year