[imen]

Incomplete question as the cost of capital or WACC isn’t provided, also isnt mentioned its life, though that can be considered as a perpetuity bt a wacc or Ke is imp. Other than that its like this

Sales 20000
VC (8000)
FC (5000)
contribution 7000

Now this is the point where you have to find its present value (ignoring tax, scrap proceeds etc) n then deduct that amount from cost of equipment 30000

[imen]

The worst thing to do is to write everything word by word as in text books this can be a disaster on ur exam day. Just know the concepts and THE IMPORTANT AUDIT TERMS thts right audit has its own language which is english bt has its specific terms to describe a thing make sure u master those tht will give a v good impression to the examiner… know the concept and the audit language n thn write in ur words not rote learning!

[Author]

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