A project requires an initial investment of 20,000 and it would give annual cash inflow of 4,000. The useful life of the project is estimated to be…

CA Intermediate · Financial Management and Strategic Management · MTP · May 2024
A project requires an initial investment of 20,000 and it would give annual cash inflow of 4,000. The useful life of the project is estimated to be 10 years. What is payback reciprocal/Approximated IRR?
(A) 20%
(B) 15%
(C) 25%
(D) 12%

Suggested Answer and Working Notes:

Correct Answer: Option (A)

20%

Topics: Part-A: Financial Management

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