Question

An initial investment of ₹50, 000 is required during the first year. The project will last for four years and the cash inflows during these four years will be:

Year 1: ₹15, 000
Year 2: ₹20, 000
Year 3: ₹25, 000
Year 4: ₹18, 000

The company has a cost of capital of 15% and wishes to appraise this project and decide whether to proceed or not. ​

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Answer 1

Answer:

18000000000000000000