Break even point

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Naresh (Querist)
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18 September 2014 Let me know BEP (in terms of period) with calculation for my investment of Rs.20.00 lakhs in a Project with interest rate 10% and depreciation rate is 20%. calculation under both (discounted and normal payback method) will help. Will depreciation here matter since I am not liable to pay Income tax ?

Thanks

DrSANGITA PHD MBA(usa)CACSCWA

DrSANGITA PHD MBA(usa)CACSCWA (Expert)
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18 September 2014 You want the calculation on Discounted Pay Back, or Normal Pay Back.
Also the Scrap Value of Assets will be an Important Factor for calculation of the BEP/Pay Back Period

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Naresh

Naresh (Querist)
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18 September 2014 BEP calculation under both (discounted and normal payback method) will help. Will depreciation here matter since I am not liable to pay Income tax ?

Thanks

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DrSANGITA PHD MBA(usa)CACSCWA

DrSANGITA PHD MBA(usa)CACSCWA (Expert)
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18 September 2014 As you said you would not be falling under Tax Net, then Depreciation would matter only for Cash Inflow Factor as depreciation is a Non cash Expenditure