Question 16
What is the present value of an annuity that pays Rs 1,000 for next 25 years (beginning next year) and faces a cost of capital of 5%? (Nearest integer value)
Rs 25,000
Rs 18,394
Rs 14,094
Rs 12,500
What is the present value of an annuity that pays Rs 1,000 for next 25 years (beginning next year) and faces a cost of capital of 5%? (Nearest integer value)
Rs 25,000
Rs 18,394
Rs 14,094
Rs 12,500
Correct answer
Rs 14,094
Question 16 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 26 Oct 2025, in the September 2025 term (IIT M DEGREE AN EXAM QDB2 26 Oct 2025). It carries 4 marks.