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    Question

    A project costs ₹1 crore and gives ₹40 lakh annually

    for 3 years. Find IRR (approximate) given PV factors: @10% = 2.4869, @20% = 2.106.
    A 12% Correct Answer Incorrect Answer
    B 14% Correct Answer Incorrect Answer
    C 10.32% Correct Answer Incorrect Answer
    D 16% Correct Answer Incorrect Answer
    E 18% Correct Answer Incorrect Answer

    Solution

    • PV@10% = ₹99.476L; PV@20% = ₹84.24L. Step 2: Compare with investment • Investment = ₹100.00L • At 10% → NPV ≈ –0.52L (slight loss) • At 20% → NPV ≈ –15.76L (big loss) So IRR lies just above 10%.

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