Question

You are evaluating two project proposals. Project A will need investment of Rs. 10 lac
in one year from now. It will return Rs. 3 lac in first year, Rs. 4.2 lac in second year
and Rs. 6.8 lac in third year. Project B will need investment of Rs. 8 lac in one year
from now. It will return Rs. 4.2 lac in first year, Rs. 3.5 lac in second year, Rs. 2.4 lac
in third year. Which project will you select? Please use NPV method

Answer 1

Answer:

proposals. Project A will need investment of Rs. 10 lac in one year from now. ... It will return Rs. 3 lac in first year, Rs. 4.2 lac in second year and Rs. 6.8 lac in third year.