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Average profit is Rs. 90,000 and the normal rate of return is 15%. Capitalised value of average profits?
ARs. 13,500
BRs. 6,00,000
CRs. 1,35,000
DRs. 9,00,000
Answer & Solution
Correct answer: B. Rs. 6,00,000
Average profit multiplied by 100 over the rate gives 90,000 times 100/15 = 6,00,000.
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