Question: i need the answer quickly Assignment 2 Capital Budget 10-Marks A company is considering an investment proposal to install new milling machine. The project will

i need the answer quickly i need the answer quickly Assignment 2 Capital Budget 10-Marks A company

Assignment 2 Capital Budget 10-Marks A company is considering an investment proposal to install new milling machine. The project will cost Rs.50,000. The facility has a life expectancy of 5 years and no salvage value. The company tax rate is 40%. Firm uses straight-line method for depreciation. The estimated earnings before tax from the proposed Investment plan are as under Year 1 2 3 Earning before tax Rs. 22.000 18,000 14,000 15,000 25,000 Computo cash flow for 5 years. Calculate 1. Payback period 2. Profitability Index 3. RR 4. NPVI discount rate is 15%) 5. Discounted Payback 6. MRR

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