A Rs 50,000 instalment on a machine bought on credit includes Rs 8,000 interest. The investing outflow is
ARs 8,000
BRs 50,000
CRs 58,000
DRs 42,000
Answer & Solution
Correct answer: D. Rs 42,000
Interest of Rs 8,000 is financing, so the loan element of 50,000 less 8,000 equals Rs 42,000 is the investing outflow.
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