Find the average rate of return

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Question - A project will cost Rs. 40000. Its stream of earnings before depreciation, interest and taxes (EBDIT) during first year through five years is expected to be Rs,12000, 14000,16000, 20000 and 22000. Assume a 50% tax rate and Rs 7000 for depreciation on a straight line basis. Find the Average rate of return.

Reference no: EM133016170

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