Calculate the value of goodwill under annuity of super profits, from the following information : a) Net profit for the last five years :40,000 ;...

1.     Calculate the value of goodwill under annuity of super profits, from the following information :

a) Net profit for the last five years : Rs.40,000 ; Rs.42,000 ; Rs.45,000 ; Rs.46,000 and Rs.47,000.

b) Capital employed in the business Rs.4,00,000.

c) Reasonable rate of expected returns on capital - 10%.

d) Present value of annuity of one rupee for five years at 10 percent interest as Rs.3.78