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    Question

    A project costs ₹1 Cr, generates ₹30 L per year

    for five years, with required return 10%. What’s the NPV?
    A –₹21.1 L Correct Answer Incorrect Answer
    B +₹11.4 L Correct Answer Incorrect Answer
    C +₹13.72 L Correct Answer Incorrect Answer
    D –₹13.28 L Correct Answer Incorrect Answer
    E Zero Correct Answer Incorrect Answer

    Solution

    PV annuity factor ≈ 3.7908;  PV = ₹30 L × 3.7908 = ₹1.1372 Cr  NPV = ₹13.72 L 

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