Model: Annuity method of super profit A company has made a forecast of profit for the coming 5 years as follows:
|
Year |
1 |
2 |
3 |
4 |
5 |
|
Profit(Rs.) |
50,000 |
60,000 |
70,000 |
80,000 |
1,00,000 |
The total assets of the firm are Rs.6,00,000 and outside liabilities are Rs.2,00,000. The present value factor @ 10% are as follows:
|
Year |
1 |
2 |
3 |
4 |
5 |
|
PVF |
0.9091 |
0.8264 |
0.7513 |
0.683 |
0.6209 |
Calculate the value of goodwill.