Question

A project with the following cash flows is under evaluation: • Initial Investment: ₹200 lakh • Yearly cash inflows: ₹50 lakh for 6 years • Discount rate: 12% Should the project be accepted based on Net Present Value (NP

  • V criteria?
A Yes, NPV is positive
B No, NPV is negative
C Yes, because payback is < 6 years
D No, because IRR is low
E Not determinable
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