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authorpriyanka2015-06-24 15:03:17 +0530
committerpriyanka2015-06-24 15:03:17 +0530
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initial commit / add all books
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+clc
+// given data
+
+Co=120000.0 // cost in Rs
+N=5 // useful life
+T=40/100.0 // tax rate
+i=9/100.0 // interest rate
+Earning=[33000.0,35000.0,37000.0,39000,41000.0]
+Depreciate=Co/N // depreciation in Rs
+pretax=zeros(5)
+discshfl=zeros(5)
+for x = 2:6
+ pretax=Earning(x-1)-Depreciate
+ tax=0.4*pretax
+ ernng=pretax-0.4*pretax
+ cashf=ernng+Depreciate
+ discshfl(x-1)=cashf/(1+i)**(x-1)
+end
+netdiscntincm=sum(discshfl) // net discount income in Rs
+NPV=netdiscntincm-Co // NPV
+printf( "NPV of dryer is Rs %.2f",NPV)
+
+// The answer in the book is wrong as the value of discounted cashflow is incorrect
+