ABC project has the following cash inflows for 4 years as ₹34,444; ₹39,877; ₹25,000; and ₹52,800 respectively. The initial Investment is ₹1,04,000. Find the correct statement from the following: Present value of an annui

CS Executive · Financial and Strategic Management · PYQS · December 2020
ABC project has the following cash inflows for 4 years as ₹34,444; ₹39,877; ₹25,000; and ₹52,800 respectively. The initial Investment is ₹1,04,000. Find the correct statement from the following: Present value of an annuity of rupee one on various discounting factor in 4th year is : 9% | 3.2397 13% | 2.9745 15% | 2.8550 16% | 2.7982 17% | 2.7432 18% | 2.6901
(A) The IRR is less than 9%.
(B) The IRR is greater than or equal to 9%, but less than 13%.
(C) The IRR is greater than 16%, but less than 18%.
(D) The IRR is greater than or equal to 17%.

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Financial Management

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