Week 3 Tutorial 1

[Pranjal Sarkar]

Respected Sir/Madam

I could not understand why at the end of the computation of the expenditure, the 3800 and 4000 was subtracted respectively.

Waiting for an early reply.

Thank You

Pranjal Sarkar

[Debajyoti Biswas]

Here, after these 3 years, at the end of 12 years, equipment A can be sold off for 3800.

So, we are supposed to further subtract 3800 here and likewise here, we can sell it off

for 4000 in the case of B.

[Debajyoti Biswas]

The selling off part comes because in question it is mentioned that the company purchases back the equipment after work-life and that also needs to be counted for calculating Vijay's expense. As that statement is part of the question, while solving, the faculty has shown each step of it. 

[Pranjal Sarkar]

Ok, thanks for the clarification.