Cash inflow of Rs 121 arrives at the end of year 2 only. At a 10% discount rate, what is its value in use?
ARs 100
BRs 110
CRs 121
DRs 90
Answer & Solution
Correct answer: A. Rs 100
Discounting 121 for two years at 10% gives 121 divided by 1.21, which is Rs 100.
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