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Mohan purchased a machinery amounting Rs. 10,00,000 on 1st April, 2001. On 31st March, 2011, similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2001) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.
Q. The present value of machinery is
Q. The present value of machinery is
- a)Rs. 10,00,000.
- b)Rs.20,00,000.
- c)Rs.15,00,000.
- d)Rs.12,00,000.
Correct answer is option 'D'. Can you explain this answer?
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Most Upvoted Answer
Mohan purchased a machinery amounting Rs. 10,00,000 on 1stApril, 2001....
To calculate the present value of the machinery, we need to consider the cash flows it is expected to generate in the future.
Given information:
- Mohan purchased the machinery for Rs. 10,00,000 on 1st April, 2001.
- On 31st March, 2011, similar machinery could be purchased for Rs. 20,00,000.
- The realizable value of the machinery purchased on 1st April, 2001 is estimated at Rs. 15,00,000.
- The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business is calculated as Rs. 12,00,000.
To calculate the present value, we need to discount the future cash flows to the present using an appropriate discount rate. In this case, the discount rate is not given, so we cannot calculate the exact present value. However, we can analyze the given information to understand the concept.
Explanation:
1. Machinery Cost: Mohan purchased the machinery for Rs. 10,00,000 on 1st April, 2001. This is the historical cost of the machinery.
2. Replacement Cost: On 31st March, 2011, similar machinery could be purchased for Rs. 20,00,000. This indicates the cost of acquiring a similar machinery at a later date.
3. Realizable Value: The realizable value of the machinery purchased on 1st April, 2001 is estimated at Rs. 15,00,000. This indicates the expected value that can be realized by selling the machinery at a later date.
4. Present Discounted Value: The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business is calculated as Rs. 12,00,000. This indicates the present value of the expected cash flows from the machinery.
Based on the given information, it can be inferred that the present value of the machinery is Rs. 12,00,000. This is the present discounted value of the expected cash inflows from the machinery.
Therefore, the correct answer is option 'D' - Rs. 12,00,000.
Given information:
- Mohan purchased the machinery for Rs. 10,00,000 on 1st April, 2001.
- On 31st March, 2011, similar machinery could be purchased for Rs. 20,00,000.
- The realizable value of the machinery purchased on 1st April, 2001 is estimated at Rs. 15,00,000.
- The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business is calculated as Rs. 12,00,000.
To calculate the present value, we need to discount the future cash flows to the present using an appropriate discount rate. In this case, the discount rate is not given, so we cannot calculate the exact present value. However, we can analyze the given information to understand the concept.
Explanation:
1. Machinery Cost: Mohan purchased the machinery for Rs. 10,00,000 on 1st April, 2001. This is the historical cost of the machinery.
2. Replacement Cost: On 31st March, 2011, similar machinery could be purchased for Rs. 20,00,000. This indicates the cost of acquiring a similar machinery at a later date.
3. Realizable Value: The realizable value of the machinery purchased on 1st April, 2001 is estimated at Rs. 15,00,000. This indicates the expected value that can be realized by selling the machinery at a later date.
4. Present Discounted Value: The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business is calculated as Rs. 12,00,000. This indicates the present value of the expected cash flows from the machinery.
Based on the given information, it can be inferred that the present value of the machinery is Rs. 12,00,000. This is the present discounted value of the expected cash inflows from the machinery.
Therefore, the correct answer is option 'D' - Rs. 12,00,000.
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Mohan purchased a machinery amounting Rs. 10,00,000 on 1stApril, 2001. On 31stMarch, 2011, similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2001) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q. The present value of machinery isa)Rs. 10,00,000.b)Rs.20,00,000.c)Rs.15,00,000.d)Rs.12,00,000.Correct answer is option 'D'. Can you explain this answer?
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Mohan purchased a machinery amounting Rs. 10,00,000 on 1stApril, 2001. On 31stMarch, 2011, similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2001) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q. The present value of machinery isa)Rs. 10,00,000.b)Rs.20,00,000.c)Rs.15,00,000.d)Rs.12,00,000.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Mohan purchased a machinery amounting Rs. 10,00,000 on 1stApril, 2001. On 31stMarch, 2011, similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2001) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q. The present value of machinery isa)Rs. 10,00,000.b)Rs.20,00,000.c)Rs.15,00,000.d)Rs.12,00,000.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mohan purchased a machinery amounting Rs. 10,00,000 on 1stApril, 2001. On 31stMarch, 2011, similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2001) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q. The present value of machinery isa)Rs. 10,00,000.b)Rs.20,00,000.c)Rs.15,00,000.d)Rs.12,00,000.Correct answer is option 'D'. Can you explain this answer?.
Mohan purchased a machinery amounting Rs. 10,00,000 on 1stApril, 2001. On 31stMarch, 2011, similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2001) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q. The present value of machinery isa)Rs. 10,00,000.b)Rs.20,00,000.c)Rs.15,00,000.d)Rs.12,00,000.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Mohan purchased a machinery amounting Rs. 10,00,000 on 1stApril, 2001. On 31stMarch, 2011, similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2001) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q. The present value of machinery isa)Rs. 10,00,000.b)Rs.20,00,000.c)Rs.15,00,000.d)Rs.12,00,000.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mohan purchased a machinery amounting Rs. 10,00,000 on 1stApril, 2001. On 31stMarch, 2011, similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2001) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q. The present value of machinery isa)Rs. 10,00,000.b)Rs.20,00,000.c)Rs.15,00,000.d)Rs.12,00,000.Correct answer is option 'D'. Can you explain this answer?.
Solutions for Mohan purchased a machinery amounting Rs. 10,00,000 on 1stApril, 2001. On 31stMarch, 2011, similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2001) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q. The present value of machinery isa)Rs. 10,00,000.b)Rs.20,00,000.c)Rs.15,00,000.d)Rs.12,00,000.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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Mohan purchased a machinery amounting Rs. 10,00,000 on 1stApril, 2001. On 31stMarch, 2011, similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2001) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q. The present value of machinery isa)Rs. 10,00,000.b)Rs.20,00,000.c)Rs.15,00,000.d)Rs.12,00,000.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Mohan purchased a machinery amounting Rs. 10,00,000 on 1stApril, 2001. On 31stMarch, 2011, similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2001) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q. The present value of machinery isa)Rs. 10,00,000.b)Rs.20,00,000.c)Rs.15,00,000.d)Rs.12,00,000.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Mohan purchased a machinery amounting Rs. 10,00,000 on 1stApril, 2001. On 31stMarch, 2011, similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2001) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q. The present value of machinery isa)Rs. 10,00,000.b)Rs.20,00,000.c)Rs.15,00,000.d)Rs.12,00,000.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Mohan purchased a machinery amounting Rs. 10,00,000 on 1stApril, 2001. On 31stMarch, 2011, similar machinery could be purchased for Rs. 20,00,000 but the realizable value of the machinery (purchased on 1.4.2001) was estimated at Rs. 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs. 12,00,000.Q. The present value of machinery isa)Rs. 10,00,000.b)Rs.20,00,000.c)Rs.15,00,000.d)Rs.12,00,000.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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