Question

A project requires an investment of ₹15 lakh and generates cash inflows of ₹3.5 lakh/year for 7 years. If the discount rate is 10%, should the project be accepted? (PVAF @10% for 7 years = 4.868)

A Yes, as NPV > 0
B No, as NPV < 0
C Yes, as IRR > 10%
D Can't say without IRR
E No, as payback > 7 years
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