Question

15. 32,103.]
MI
Rama Synthetics Ltd. which has a 50% tax rate and a 10% after tax cos ot capital is evaluating
p.v. factor [11.14
a project which will cost Rs. 1,00,000 and will require an extra working capital of Rs. 50,000
The project will generate additional sales of Rs. 1,00,000 and will require cash expenses of
Rs. 30,000 in each of its 5 year life. It will depreciate on straight line basis.
What is the net present value?
Note : The present value factor at 10% discount rate is as follows:
Year
1
2
3
4
5
Total
Discount factor
0.9091 0.8264 0.7513 0.6830 0.6209 3.7907
er. • NPV
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Answer 1

Answer:

2 is right answer

of the

question ok

Answer 2

Answer:

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