alleryStart learning →Rs 1,00,000 spent yields Rs 40,000 a year for 3 years. NPV at 10%?
APlus Rs 20,000
BPlus Rs 526
CExactly zero
DMinus Rs 526
Answer & Solution
Correct answer: D. Minus Rs 526
The 3-year annuity factor at 10% is 2.4869, so inflows are worth 99,474, which is 526 short of the outlay.
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