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Rohit AgrawalRohit Agrawal asked 1 year ago
1 Answers
RaviRavi Staff answered 1 year ago

its a ind as question not expected in old course.
they took cost of new engine, discounted it to value 6 years back
90,000 / (1+ 5%) raised to 6
or simply use factor 90,000 * 0.746
you will get 67,140
so ind as says to replace cost on discounted value basis

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