Question 15
What is the present value of a cash flow stream that pays Rs 3000 next year, grows at a rate of 3% per year thereafter and faces a cost of capital of 9% per year?
Rs 100,000
Rs 50,000
Rs 33,333
Rs 9,000
What is the present value of a cash flow stream that pays Rs 3000 next year, grows at a rate of 3% per year thereafter and faces a cost of capital of 9% per year?
Rs 100,000
Rs 50,000
Rs 33,333
Rs 9,000
Correct answer
Rs 50,000
Question 15 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 27 Oct 2024, in the September 2024 term (IIT M DEGREE AN EXAM QDB2 27 Oct 2024). It carries 4 marks.