The average profit of a business over the last five years amounted to Rs60,000
Channel: Doubtnut
Date: 2020-04-26

The average profit of a business over the last five years amounted to Rs60,000 . The normal commerical yield on capital invested in such a business is deemed to be `10%` p.a. The net capital invested in the business is  Rs5,00,000. Amount of goodwikll, if it is based on 3 years purchase of last 5 years super profits will be: