alleryStart learning →A project costs Rs 1,00,000 and returns Rs 1,10,000 a year later. At 10% cost of capital its NPV is
ARs 10,000
BRs 0
CRs 1,000
DRs -10,000
Answer & Solution
Correct answer: B. Rs 0
1,10,000 / 1.10 = 1,00,000, which equals the outlay, so NPV is zero and IRR is 10%.
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