Shaktiman Inc. considering a project that requires ₹4 Crore as initial investment. It is expected to generate annual after-tax cash flows of ₹60 Lakh for 12 years. Shaktiman's weighted average cost of capital (WACC) is 1

CS Executive · Financial and Strategic Management · PYQS · June 2021
Shaktiman Inc. considering a project that requires ₹4 Crore as initial investment. It is expected to generate annual after-tax cash flows of ₹60 Lakh for 12 years. Shaktiman's weighted average cost of capital (WACC) is 14%. This project's net present value (NPV) and the approximate internal rate of return (IRR) are: NPV | IRR
(A) ₹60,40,000 | 10%
(B) ₹60,40,000 | 14%
(C) ₹62,10,000 | 14%
(D) ₹62,10,000 | 10%

Answer & Explanation:

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Topics: Capital Budgeting

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