Model: Annuity method of super profit A company has made a forecast of profit for the coming 5 years…

Model: Annuity method of super profit A company has made a forecast of profit for the coming 5 years as follows:

Year

1

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

2

3

4

5

Profit(Rs.)

50,000

60,000

70,000

80,000

1,00,000

The total assets of the firm are Rs.6,00,000 and outside liabilities are Rs.2,00,000. The present value factor @ 10% are as follows:

Year

1

2

3

4

5

PVF

0.9091

0.8264

0.7513

0.683

0.6209

Calculate the value of goodwill.

 

Looking for a Similar Assignment? Let us take care of your classwork while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today! Use Code FREE15