Question
Initial Investment = ₹1,00,000; Cash inflow =
₹40,000 for 4 years; Discount rate = 10%. PV factor (4 yrs) = 3.169. Compute NPV.Solution
PV of inflows = ₹40,000 × 3.169 = ₹1,26,760 NPV = ₹1,26,760 – ₹1,00,000 = ₹26,760.
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