Question

GH Ltd took a term loan of Rs.24 crore for a period of 20 years to be repaid in equal annual instalments. The interest is 10% p.a. on reducing balance. The projected Net Operating Income is ₹3 crore and ₹4 crore in the first and second year respectively. What is the Debt Service Coverage Ratio (DSC

  • R of GH Ltd in second year? 
A 1.15
B 2.50
C 1.67
D 3.33
E 0.83
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