1. From the following cash flow streams, which cash flow streams would you recommend and why?
2. The cost of a plant is Rs 30,000. The expected life of the plant is 3 years. It is expected to generate EBDIT (Earnings before depreciation, interest and taxes): Rs 13,000, Rs 15,000, and Rs 17,000 respectively. Compute accounting rate of return assuming 50% tax, and straight line method of depreciation
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