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
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