GRI Co. Ltd., decided to invest in plant and machinery ₹ 650.00 lakh and life of asset estimated is 5 years. At the end of the fifth year estimated residual value 3.00 lakh and disposal expenses 1.00 lakh only. The estim

CS Executive · Financial and Strategic Management · PYQS · December 2021
GRI Co. Ltd., decided to invest in plant and machinery ₹ 650.00 lakh and life of asset estimated is 5 years. At the end of the fifth year estimated residual value 3.00 lakh and disposal expenses 1.00 lakh only. The estimated inflow ₹ 75, 90, 110, 125 and 140 lakh respectively and PVF @ 9% for the year 1-5 as (0.9174, 0.8417, 07722, 0.7084 and 0.6499 respectively). Calculate NPV.
(A) 239.66
(B) (-) 239.66
(C) 240.96
(D) - 240.96

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Management

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