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Corporate Finance · Quiz 2 · 12 Apr 2026 · January 2026 term

Question 16: A project pays 200 units with probability 0.25, 400 unit…

Question 16

+4 marksOne correct option

A project pays 200 units with probability 0.25, 400 units with probability 0.40 and 600 units with probability 0.35, in the next year. If the expected annual discount rate is 10%, what is the project's present value? (Rounded off to nearest integer)

  1. A

    382 units

  2. B

    400 units

  3. C

    420 units

  4. D

    462 units

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Correct answer

  • A

    382 units

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Question 16 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 2 paper sat on 12 Apr 2026, in the January 2026 term (Corporate Finance 07 Apr 26). It carries 4 marks.

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