+3 votes
in Class 12 by kratos

Average Profits of a Firm during the last few years are Rs 80,000 and the Normal Rate of Returns in a similar business is 10 %. If the Goodwill of the Firm is Rs 1,00,000 at 4 years’ Purchase of Super Profit, find the Capital Employed by the Firm.

1 Answer

+4 votes
by kratos
 
Best answer

Average Profit = Rs 80,000

Rate of Return = 10 %

...