📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    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.

    Practice Next
    ask-question