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Corporate Finance · Quiz 1 · 15 Mar 2026 · January 2026 term

Question 24: You are looking to invest in one new project, and you ha…

Question 24

+4 marksOne correct option

You are looking to invest in one new project, and you have three options: Project-A is expected to generate Rs 10 lakh after two years and Rs 20 lakh after 5 years; Project-B is expected to generate Rs 6 lakh each year for 6 years (beginning next year); Project-C is expected to generate Rs 40 lakh after 6 years. Each one of the projects costs Rs 25 lakh today. The required rate of return on these projects is 10%. Which one of the projects should you choose according to NPV criterion?

  1. A

    Project-A

  2. B

    Project-B

  3. C

    Project-C

  4. D

    All three projects have the same NPV

Show answer

Correct answer

  • B

    Project-B

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Question 24 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 15 Mar 2026, in the January 2026 term (Corporate Finance 15 Mar 26). It carries 4 marks.

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