A firm's average profits are Rs 70,000. It includes an abnormal profit of Rs 5,000. Capital invested in the business is Rs 5,50,000 and the normal rate of return is 10%. Calculate goodwill at four times the super profit.

A firm's average profits are Rs 70,000. It includes an abnormal profit

1.	A firm's average profits are Rs 70,000. It includes an abnormal profit of Rs 5,000. Capital invested in the business is Rs 5,50,000 and the normal rate of return is 10%. Calculate goodwill at four times the super profit.
Answer» A firm's average profits are Rs 70,000. It includes an abnormal profit of Rs 5,000. Capital invested in the business is Rs 5,50,000 and the normal rate of return is 10%. Calculate goodwill at four times the super profit.

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A firm's average profits are Rs 70,000. It includes an abnormal profit of Rs 5,000. Capital invested in the business is Rs 5,50,000 and the normal rate of return is 10%. Calculate goodwill at four times the super profit.

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