alleryStart learning →A project costs Rs 20,000 and gives Rs 8,000 yearly for 3 years. At 10% (annuity factor 2.4869) its NPV is about
ARs 4,000
BRs 105
CRs -105
DRs -4,000
Answer & Solution
Correct answer: C. Rs -105
8,000 x 2.4869 = 19,895, which is below 20,000, so NPV is about Rs -105 and the project is rejected.
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