Aqua ltd has a proposal for a project whose cost is


Aqua ltd has a proposal for a project whose cost is Sh.50million and has an economic useful life of 5 years. It has a nil residual value. The earnings before depreciation and tax expected from the project are as follows:

Year Earnings before depreciation and tax

Sh.'000'

1 12000

2 15000

3 18000

4 20000

5 22000

The corporate tax rate is 30% and depreciation is on straight line basis.

Solution Preview :

Prepared by a verified Expert
Finance Basics: Aqua ltd has a proposal for a project whose cost is
Reference No:- TGS01491978

Now Priced at $10 (50% Discount)

Recommended (96%)

Rated (4.8/5)