A project under consideration whose useful life is 4 years, will have no change in revenue but will save cost of ₹1,60,000 annually. It has IRR of 15%. What is the project cost i.e., initial investment?

CS Executive · Financial and Strategic Management · PYQS · December 2023
A project under consideration whose useful life is 4 years, will have no change in revenue but will save cost of ₹1,60,000 annually. It has IRR of 15%. What is the project cost i.e., initial investment?
(A) ₹10,66,667
(B) ₹4,80,200
(C) ₹5,32,800
(D) ₹4,56,800

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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