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Homework answers / question archive / investment in a project is Rs200lakhs and netpresent value is Rs 70 lakhs

investment in a project is Rs200lakhs and netpresent value is Rs 70 lakhs

Finance

investment in a project is Rs200lakhs and netpresent value is Rs 70 lakhs. Then the amount of inflows is

  1. 130 Lakhs
  2. 270 Lakhs
  3. 100 Lakhs
  4. 200 Lakhs

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Computation of Amount of Inflows:

Net Present Value = Present Value of Cash Inflows - Initial Investment

70 Lakhs = Present Value of Cash Inflows - 200 Lakhs 

Present Value of Cash Inflows = 70 Lakhs + 200 Lakhs = 270 Lakhs 

So, the correct option is 2nd "270 Lakhs".