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Q. |
If the average interest rate is 12% and depreciation is to be accounted for by straight line method at 10%, which of the following equipment will be most economical? |
A. | Initial cost Rs. 4000 Annual disbursements Rs. 6000 |
B. | Initial cost Rs. 5500 Annual disbursements Rs. 4000 |
C. | Initial cost Rs. 6000 Annual disbursements Rs. 3880 |
D. | Initial cost Rs. 5000 Annual disbursements Rs. 3500 |
E. | Initial cost Rs. 7000 Annual disbursements Rs. 2500 |
Answer» E. Initial cost Rs. 7000 Annual disbursements Rs. 2500 |
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