How to calculate Net Present Value (NPV) ?



0
in n.p.v module in the last question of test quiz you have asked if one gets oppurtunity to invest 20 lacs and gets 5 lacs yearly cash flow for 5 years assuming dicount rate of 15% there n.p.v comes negative we shuld not invest and

there in option given "no" as well and "yes if 5 % discount rate"
both are right but you have fixed no as incorrect and yes at 5% discount rateas the correct answer eighther give us opportunity click two options or those who mark "no" give them also correct and those who mark "yes at discount rate of 5%" to them also correct
it has created ambiguity and doubt for new learners

1 Answer(s)


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Amit, We felt "5% discount" was the best answer. Though "No" is also correct, "5% discount" is a better answer. I think by reading all 4 options before answering, once can determine that "5% discount" is the correct answer. Thanks for the feedback.

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