alleryStart learning →Outlay Rs 1,00,000; inflow Rs 1,10,000 after one year; discount rate 10%. NPV?
ARs 10,000 gain
BRs 11,000 gain
CRs 0 exactly
DRs 10,000 loss
Answer & Solution
Correct answer: C. Rs 0 exactly
Rs 1,10,000 discounted one year at 10 percent is Rs 1,00,000, which equals the outlay, so NPV is nil.
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