Question

An investment project costs ₹1,00,000 and is expected to generate cash inflows of ₹30,000 per year for 5 years. If the cost of capital is 10%, determine whether the project is financially viable based on Net Present Value (NP

  • V . Use PV factor of 10% for 5 years = 3.7908.
A NPV = ₹5,000; Accept
B NPV = ₹12,000; Accept
C NPV = ₹10,000; Accept
D NPV = ₹13,724; Accept
E NPV = ₹9,500; Reject
Practice Next

Hey! Ask a query

🎓
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
  • 200 Questions with Detailed Solutions
  • Section-wise Coverage (GA, English, Quant & Reasoning)