Cost of capital is 10 rate of depreciation 10 economic life, Chemistry

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Cost of capital is 10 rate of depreciation 10 economic life

20th Century Leasing Company Ltd., provided you the following information and requested you to suggest whether the lease proposed feasible or not, using NPV method. Cost of asset Rs. 20,00,000 Cost of capital is 10% Rate of depreciation 10% Economic life of the asset 10 yrs Tax rate 35% Lease rental per year Rs. 6,00,000.

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Chemistry: Cost of capital is 10 rate of depreciation 10 economic life

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