If an investment of ₹3,00,000 pays ₹25,000 p.a. in perpetuity, what is the Net Present Value, if the interest rate is 9% ?

CS Executive · Financial and Strategic Management · PYQS · December 2019
If an investment of ₹3,00,000 pays ₹25,000 p.a. in perpetuity, what is the Net Present Value, if the interest rate is 9% ?
(A) -22222
(B) +22222
(C) +24736
(D) +27250

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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