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Tutorial Activity Week 6

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Richard Midgley
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5 views1 page

Tutorial Activity Week 6

Uploaded by

Richard Midgley
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Tutorial Activity

Q.1 What do you mean by depreciation, Explain different methods of depreciation

[Link] Plant & Machinery purchased for $38,[Link] expected life is 5 years and then
sold for scrap $3150

Calculate the depreciation by using

(a) Straight line method


(b) Diminishing/reducing value method (rate of depreciation is 20%)

Q3 Two Projects, Project A & B are given. You are required to give the recommendation
to client which project is profitable to invest.

Year Project A Project B


Initial Investment 180,000 180,000
1 40,000 50,000
2 30,000 20,000
3 50,000 60,000
4 70,000 40,000
5 20,000 30,000
6 60,000 20,000
7 10,000 70,000
8 30,000 10,000

From the information given above calculate (a) Pay Back Period (b) Net Present Value

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