A business earned an average profit of ₹ 1,80,000 during the last few years. Average capital employed by the firm is ₹ 12,50,000. If goodwill of the firm is valued at ₹ 1,60,000 at 2 year’s purchase of super profit, find normal rate of return.

[Ans.: Normal Rate of Return – 8%.]

Anurag Pathak Answered question May 6, 2024
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