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###### Nisha Sharma posted an Question
October 21, 2021 • 08:10 am 30 points
• UGC NET
• Commerce

# Determine the roirowngi wtay vack peod, and (11) average rate of return. solution : cash inflows year 5 rs. 3 rs. rs rs. rs. cash flow before dep. and tax less:

Determine the roirowngi wTay vack peod, and (11) Average rate of return. Solution : Cash Inflows Year 5 Rs. 3 Rs. Rs Rs. Rs. Cash Flow before dep. And tax Less: Depreciation Profit before tax Less: Tax@ 35% Profit After tax Add Depreciation Cash Inflow Cummulative CF 100,000 250,000 100,000 100,000 150,000 150,000 100,000 1Q0,000 100,000 100,000 150,000 52,500 50,000 50,000 17,500 17,500 32,500 100,000 132,500 97,500 100,000 197,500 32,500 100,000 100,000 100,000 100,000 100,000 132,500 100,000 200,000 332,500 465,000 662,500 Rs.5,00, 000-Rs. 4,65,000 (i) Pay-back Period = 4 + Rs. 1,97,500

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• ##### Nisha sharma

my xact doubt is jst division

• ##### Rucha rajesh shingvekar Best Answer

It's. 0.18 means (0.18*12 that is 2 months)

can u please show how u have divided ...

I m not getting O.18 I m getting 0.17

0.1772 here last two digit is 72 which is greater than 50 then you take next number that is (17+1) so it's 18. this is for easy calculation

Now clear

0.18 only for make calculation easy. you can also take 0.1772

• ##### Nisha sharma

mam I m having problem in dividing 35000/197500 according...it is not coming 0.18...can u please show the division

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