ISRO Accounts Officer 2007

Question 83

Gotham City Council is considering the purchase of wheel clamping equipment. The equipment will cost Rs.1,00,000 and will last for three years. It will have no scrap value. It is expected to generate Rs.50,000 a year in Years 1 and 2, and Rs.40,000 in Year 3.
What is the Net present Value of the investment?
Use PV factors of 0.91 for Year 1, 0.83 for Year2, and 0.75 for Year3.


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