compute ex ante income of mr raj 562266

On Jan 1, 2008, Raj purchased an asset for Rs 3,50,000 and anticipated an annual cash flow of Rs 1,00,000 at the end of each year for the next 5 years. On Dec 31, 2008, he actually earned Rs 1,20,000 during 2008 (it was ascertained from his financial records) and anticipated an annual cash flow of Rs 1,50,000 at the end of each year for the next 4 years. The discount factors at 12% discount rate are given as follows:

Year

1

2

3

4

5

Discount factor

.893

.797

.712

.636

.567

Compute ex ante income of Mr Raj.

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