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A project has a PI of 1.05 on an outlay of Rs 4,00,000. What is its NPV?

ARs 20,000
BRs 40,000
CRs 5,000
DRs 4,20,000
Answer & Solution
Correct answer: A. Rs 20,000
NPV = (1.05 minus 1) x 400,000 = Rs 20,000.
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