[ashminder]

Thanks

[ashminder]

hi actually initial investment = plant & machinery cost + working capital
and working capital =20% of annual sales value. for fiest inv A sales 30*150000=4500000 and 20%of this = 900000 plus plant cost = 2100,000 so total initial outlay = 3000000. hope it helps

[ashminder]

Actually it interprets to either 1.3520 USD = 1EURO or 1.3540 USD = 1 Euro. Now to buy say 1000 USD the rate will be either (1/1.3520)* 1000 or (1/1.3540)*1000 but as a rule always choose option that leaves you worse off so for buy option that leads to higher cost and that one is C. Hope it helps

[ashminder]

thanks

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