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Corporate Finance · End Term · 13 Apr 2025 · January 2025 term

Question 17: Sarita is considering investing in an opportunity that p…

Question 17

+3 marksOne correct option

Sarita is considering investing in an opportunity that promises to pay Rs 5,000 in one year, Rs 10,000 in two years and Rs 20,000 in three years. If the prevailing constant rate of return is 10%, then what is maximum price that Sarita should agree to pay for the project? (Round off to the nearest integer)

  1. A

    Rs 35,000

  2. B

    Rs 27,836

  3. C

    Rs 24,174

  4. D

    Rs 20,000

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Correct answer

  • B

    Rs 27,836

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Question 17 of 35 in the IIT Madras BS Corporate Finance (Corporate Finance) End Term paper sat on 13 Apr 2025, in the January 2025 term (IIT M IMPROVEMENT AN EXAM QIM3 13 Apr 2025). It carries 3 marks.

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