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RESULT SUMMARY:
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VALUATION OF MACHINERY AFTER UPGRADING
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Net Income from Present Machinery per Annum: 24000
Balance Life of Machine in Years: 15
Cost of Upgradation of Machinery: 50000
Expected Net Income from Upgraded Machinery per Annum: 24000
Expected Balance Life of Upgraded Machinery in Years: 40
Cost of Similar Upgraded 2nd Hand Machinery: 250000
Discount Rate in %: 8
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Present Value of Existing Machinery: 205427.49
Present Value of Upgraded Machinery: 286190.73
Benefit of Upgrading Machinery: 30763.24
Value of Upgraded Machinery by Comparison: 250000
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Note : Use Consistent Units.
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