PV of inflows is Rs 12 lakh; initial outlay is Rs 10 lakh. What is the NPV?
ARs 22 lakh
BRs 12 lakh
CRs 2 lakh
DRs 10 lakh
Answer & Solution
Correct answer: C. Rs 2 lakh
NPV is present value of inflows less the outlay, so 12 lakh minus 10 lakh is Rs 2 lakh.
Keep practising Integrated Business Solutions
Browse all Integrated Business Solutions questions for CA Final, or explore more Strategic Management topics.
Related questions
In 1988 Mintzberg found the strategic process to be more?The SWOT matrix is also known as?The discount rate that gives a bond's price as NPV is called its?Applied ex-ante, what does the IRR provide?Two projects give equal returns; one pays earlier. Which has higher IRR?Rs 1,21,000 arrives in 2 years. At 10% annual discount, present value?Outlay Rs 1,00,000; inflow Rs 1,10,000 after one year; discount rate 10%. NPV?A profitable firm lacks liquidity if assets cannot be quickly?