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Five-year profits (Rs.) were 4,00,000; 3,98,000; 4,50,000; 4,45,000; 5,00,000. Goodwill at 4 years' average?
A17,54,400
B21,93,000
C15,00,000
D8,77,200
Answer & Solution
Correct answer: A. 17,54,400
The total is 21,93,000, the average is 4,38,600, and four years' purchase gives 17,54,400.
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