oil India possesses an oil pipeline which will create Rs. 20 million of trade wage in for money the advancing year. It has a long existence with practically insignificant working expenses.
The volume of oil dispatched, then again, will decay after some time and, thus, money streams will diminish by 4 percent for each year. The markdown rate is 15 percent.
a. In the event 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 30 years, what is the present estimation of its money streams