alleryStart learning →Projects: Rs 1,00,000 giving Rs 1,32,000, and Rs 10,000 giving Rs 13,750, both in a year at 10%. Higher NPV?
AThe Rs 10,000 one
BThe Rs 1,00,000 one
CBoth the same
DNeither of them
Answer & Solution
Correct answer: B. The Rs 1,00,000 one
NPVs are Rs 20,000 for the larger project against Rs 2,500 for the smaller, though the smaller has the higher IRR.
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