The details of the feasibility report of a project are as shown
below. Check the feasibility of the project based on present worth
method, using i = 20%.
Initial outlay = Rs. 50, 00,000
Life of the project = 20 years.
Annual equivalent revenue = Rs. 15, 00,000
Modernizing cost at the end of the 10th year = Rs. 20,
00,000
Salvage value at the end of project life = Rs. 5,00,000.