Cost Rs 10,000; one inflow of Rs 12,100 in 2 years. NPV at 8% is about:
ARs 1,100
BRs 374
CRs 2,100
DRs 0
Answer & Solution
Correct answer: B. Rs 374
12,100 divided by 1.08 squared (1.1664) is about 10,374, so NPV is about 374 above the cost.
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