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IRR

Financial Management

How do they arrive this IRR without any computation.

Saravana Perumal

CA Inter

★ 2K+

17-May-23 13:32

214

Answers (3)

They might have used excel. You can use the formula and compute.

CA Suraj Lakhotia

Admin

17-May-23 13:51

CA Suraj Lakhotia Admin

They might have used excel. You can use the formula and compute.

To arrive a cash outflow of new machine, whether we should take M.V or seller agreed value , but here they doing with some tax calculation why sir? Please sir

Thread Starter

Saravana Perumal

CA Inter

★ 2K+

17-May-23 14:16

Thread Starter

Saravana Perumal

To arrive a cash outflow of new machine, whether we should take M.V or seller agreed value , but here they doing with some tax calculation why sir? Please sir

We have to consider seller agreed value and adjust it for the tax impact. Since, the existing machine has been fully depreciated for tax purposes, the value which seller has agreed to accept it for, will be our gain. On that there will be a tax payment (40% in this case) So, in a nutshell, we pay 58.5L [60 - 2.5L + 1L] for the new machine.