Question
The capital investment of Rs. 2,50,00,000 for a project can be sourced from following different sources: Source Amount (Rs.) Cost of Capital Equity capital 1,00,00,000
The capital investment of Rs. 2,50,00,000 for a project can be sourced from following different sources:
Source Amount (Rs.) Cost of Capital
Equity capital 1,00,00,000 15%
Preference Capital 50,00,000 14%
Debentures 50,00,000 11% .
For remaining capital requirement, term loan is available at 10% interest rate.
If the project IRR is 12%, should it be accepted?
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Fundamentals Of Risk Management
Authors: Paul Hopkin
5th Edition
0749483075, 978-0749483074
