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A Project costs Rs 80,000 and is expected to generate cash inflows as: Year Cash inflows(Rs) 1 20,000 2 24,000 3 30,000 4 36,000 5
A Project costs Rs 80,000 and is expected to generate cash inflows as:
| Year | Cash inflows(Rs) |
| 1 | 20,000 |
| 2 | 24,000 |
| 3 | 30,000 |
| 4 | 36,000 |
| 5 | 40,000 |
| 6 | 44,000 |
a. Discuss the steps for calculating the NPV
b. Calculate the Net Present Value of the project if the cost of capital is 15%
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Public Finance and Public Policy
Authors: Jonathan Gruber
5th edition
1464143331, 978-1464143335
