Module 33: NPV
1 Answer(s)
Ankit
Hi supriya,
As per the formula for PV for the first year it should be 1lakh/(1+.15) = 86.95K
So going on like this
1year = 86.95K
2year = 75.60K
3Year = 65.74K
4Year = 57K
5Year = 50K
Adding these all will give you present value = 3.36Lakh
Net Present Value = 10Lakh - 3.36Lakh = 6.64Lakh which is there in the option.
Hope you got it!
May 21 2013 11:18 PM
As per the formula for PV for the first year it should be 1lakh/(1+.15) = 86.95K
So going on like this
1year = 86.95K
2year = 75.60K
3Year = 65.74K
4Year = 57K
5Year = 50K
Adding these all will give you present value = 3.36Lakh
Net Present Value = 10Lakh - 3.36Lakh = 6.64Lakh which is there in the option.
Hope you got it!