alleryStart learning →Inflows worth Rs 5,60,000 in present value cost Rs 5,00,000 today. What is the NPV?
ARs 10,60,000
BRs 60,000
CRs 5,60,000
DRs 5,00,000
Answer & Solution
Correct answer: B. Rs 60,000
NPV = present value of inflows minus investment = 5,60,000 minus 5,00,000 = Rs 60,000.
Keep practising Capital Budgeting
Browse all Capital Budgeting questions for CA Inter, or explore more Financial Management topics.
Related questions
Under which cash flow statement section is capex commonly reported?Which spending is capital expenditure as it extends asset life?Which of these spending items is a capital expenditure?Where do capitalised expenditures show up in the financial statements?Which expense is the counterpart of capital expenditure?What is capital expenditure (capex)?Payback also ignores which part of a project's cash flows?Which key weakness does the simple payback period have?