B.Com.-VI Capital Budgeting
CAPITAL BUDGETING Examples Ex. 3 Dharati Company Ltd. Table for Cash flow and Present Value Year PBT Tax (50%) PAT Depreciation Cash Flow Discount Factor (10%) Present Value 1 100000 50000 50000 40000 90000 0.909 81810 2 100000 50000 50000 40000 90000 0.826 74340 3 80000 40000 40000 40000 80000 0.751 60080 4 80000 40000 40000 40000 80000 0.683 54640 5 40000 20000 20000 40000 60000 0.621 37260 Total 200000 308130 Depreciation