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Business, 13.06.2020 13:57 shongmadi77

The expected profits of a firm for the next 5 years are as follows:- l. 200000
ll. 100000
lll. 500000
lV. 300000
V. 400000
The total assets of the firm are Rs 20,00,000 and outside liabilities are Rs 11,00,000. The present value factor at 10% are
follows:-

l. 0.9091
ll. 0.8264
lll. 0.7513
lV. 0.6830
V. 0.6209
Calculate the value of goodwill using annuity method.

[Ans: Rs 724067]

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