To the nearest rupee, what is the net present value of a replacement project whose cash

flows are -Rs.104,000; Rs.34,444; Rs.39,877; Rs.25,000; and Rs.52,800 for years 0

through 4, respectively? The firm has decided to assume that the appropriate cost of capital

is 10% and the appropriate risk-free rate is 6%.

A. Rs.15,115

B. Rs.26,798

C. Rs.33,346

D. Rs.48,121

1 Answer

Answer :

C. Rs.33,346

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