The capital employed by a firm is rupees 300000. the annual profit of the firm is rupees 60000 including rupees 9600 received as a compensation. the money could be invested in the bank for 5 years at 10 % per annum . considering 2% as fair compensation for the risk involved in the firm compute goodwill of the firm on the basis of capitalisation of super profit.
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in this question...my query is that why we are taking 10% to calculate normal profits and not 2% ??
