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Corporate Finance · End Term · 10 May 2026 · January 2026 term · Set 1-2

Question 26: Lokesh is considering investing in an opportunity that p…

Question 26

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Lokesh is considering investing in an opportunity that promises to pay Rs 2,000 in one year, Rs 2,500 in two years and Rs 3,000 in three years. If the prevailing constant rate of return is 8%, then what is the maximum price that Lokesh should agree to pay for the opportunity? (Round off to the nearest integer)

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Correct answer: 6380 (accepted within ±10)

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Question 26 of 35 in the IIT Madras BS Corporate Finance (Corporate Finance) End Term paper sat on 10 May 2026, in the January 2026 term (Corporate Finance 06 May 26). It carries 4 marks.

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