Raja & Co. desires to take a project whose cost is ₹10,000 and useful life is 4 years. Expected annual cash flows are ₹4,000 p.a. Cost of capital is 14%. The sensitivity of the project (in terms of percentage) will b

CS Executive · Financial and Strategic Management · PYQS · June 2023
Raja & Co. desires to take a project whose cost is ₹10,000 and useful life is 4 years. Expected annual cash flows are ₹4,000 p.a. Cost of capital is 14%. The sensitivity of the project (in terms of percentage) will be :
(A) 16.55%
(B) 16.95%
(C) 17.55%
(D) 17.95%

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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