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    • Question

      Outstanding is ₹60 crore. Realisable value through

      SARFAESI after 2 years is ₹35 crore (NPV ₹28 crore). Borrower offers OTS of ₹30 crore upfront. What is the financially correct decision?
      A Reject OTS Correct Answer Incorrect Answer
      B Accept OTS Correct Answer Incorrect Answer
      C Go for litigation only Correct Answer Incorrect Answer
      D Defer decision Correct Answer Incorrect Answer
      E Convert to equity Correct Answer Incorrect Answer

      Solution

      OTS 30 > NPV of recovery 28 → Accept OTS

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