Question

    Project IRR is 14%. Cost of capital 11%. NPV at 11% is

    positive ₹8 cr. However, DSCR averages only 1.05. What is the correct appraisal inference?
    A Accept fully Correct Answer Incorrect Answer
    B Reject due to low DSCR Correct Answer Incorrect Answer
    C Accept with restructuring of debt Correct Answer Incorrect Answer
    D Ignore DSCR Correct Answer Incorrect Answer
    E Defer indefinitely Correct Answer Incorrect Answer

    Solution

    Project viable but weak servicing → restructure repayment.

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