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    • 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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