What is the NPV of 50 lakhs invested gives you a steady cash flow of Rs 15 lakhs a year assuming the interest rate to be 15%. The answer what I get is 35888 but the correct answer given is 28233. pl explain

May 11 2013 02:04 PM

Year 1 = 1304346

Year 2 = 1134215

Year 3 = 986274

Year 4 = 857629

Year 5 = 745765

Total = 5028229 - 5000000 = 28229

I rounded yearly values.

Jul 08 2013 01:04 AM
Year 2 = 1134215

Year 3 = 986274

Year 4 = 857629

Year 5 = 745765

Total = 5028229 - 5000000 = 28229

I rounded yearly values.