petrolite claims an oil pipeline which will create Rs. 15 million of trade wage in for cold hard currency the nearing year. It has a long existence with essentially immaterial working expenses.
The volume of oil delivered, be that as it may, will decay after some time and, consequently, money streams will diminish by 6 percent for every year. The rebate rate is 18 percent.
a. On the off chance that the pipeline is utilized everlastingly, what is the present estimation of its money streams?
b. In the event that the pipeline is scrapped following 10 years, what is the present estimation of its money streams?