Multiple Choice Questions on Estimated annual income Rs 5 00 000 and market rate of return on capital is 20 then amount of c........... for Punjab Government (Allied) Exams Preparation

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Multiple Choice Questions

Estimated annual income Rs 5 00 000 and market rate of return on capital is 20 then amount of c...........

Finance( Revenue Account ) Cost of capital
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    Estimated annual income Rs. 5,00,000 and market rate of return on capital is 20%, then amount of capitalisation will be:

     

    Rs. 2,50,000

     

    Incorrect Answer

    Rs. 25,00,000 

     

    Correct Answer

    Rs. 10,00,000

     

    Incorrect Answer

    Rs. 50,00,000

     

    Incorrect Answer
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    Explanation:

     Amount of Capitalisation= Annual Income/Capitalisation Rate = 5,00,000/.20= 25,00,000/-

    By: Vikas Goyal
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