IAI Nov 2005 Q20 (i)

Discussion in 'CT2' started by Srijana Raghunath, Aug 30, 2017.

  1. In solution, the annual cost of the new machine is calculated by

    10 Crore/ 5.650223 = 1.77 Crore

    Where does 5.650223 come from?
    Discount rate is given as 12%.
     
  2. Lynn Birchall

    Lynn Birchall ActEd Tutor Staff Member

    It looks like the 5.650223 is a 10-year annuity certain factor (payable annually in arrears) calculated at 12%.
     



  3. Ok..thank you.
     

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