A machinery is purchased for Rs. 3,00,000 and Rs. 50,000 is spent on its installation Rs. 5,000 is spent on fuel. What will be amount of capital expenditure?
Answer is (2) Rs.350000
The capital expenditure of machine will be = Machine Purchase Price + Installation Charges =3,00,000 + 50,000 =3,50,000.
Total capital expenditure will be Rs. 3, 50, 000.
Hence, the answer is (2) Rs. 3, 50, 000.