Depreciation has bcen charged on straight line basis and cstimated life of both machincs is five years. You are required to find out: 1) Average rate of return on machines 'A' and 'B'.

MATLAB: An Introduction with Applications
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Example S: Machines A' and B' are detailed below:
Items
Machine A
Machine B
50,000
Cost
50,000
Annual carning alter depreciation and taxes:
Ist year
2nd year
3rd year
4th year
Sth year
3,000
11,000
5,000
7,000
9,000
11,000
35,000
9,000
7,000
5,000
3,000
35,000
Depreciation has been charged on straight line basis and estimated life of both machines is five years. You are
required to find out:
I) Average rate of return on machines 'A' and 'B'.
Transcribed Image Text:Example S: Machines A' and B' are detailed below: Items Machine A Machine B 50,000 Cost 50,000 Annual carning alter depreciation and taxes: Ist year 2nd year 3rd year 4th year Sth year 3,000 11,000 5,000 7,000 9,000 11,000 35,000 9,000 7,000 5,000 3,000 35,000 Depreciation has been charged on straight line basis and estimated life of both machines is five years. You are required to find out: I) Average rate of return on machines 'A' and 'B'.
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