Mathematics of FinancePYQ May 25Question 4163 of 479
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A project is expected to provide cash inflows as follows for 3 years: Year 1: ₹ 40,000, Year 2: ₹ 50,000, Year 3: ₹ 30,000. The company's cost of capital or required rate of return is 15%. What is the present value of cash inflows of the company?

Options

A₹ 99,240
B₹ 1,02,840
C₹ 1,12,640
D₹ 92,315
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Correct Answer

Option d₹ 92,315

All Options:

  • A₹ 99,240
  • B₹ 1,02,840
  • C₹ 1,12,640
  • D₹ 92,315

About This Chapter: Mathematics of Finance

Paper

Paper 3: Quantitative Aptitude

Weightage

12-16 Marks

Key Topics

Simple & Compound Interest, Annuity, Perpetuity

The most important mathematical chapter in the entire syllabus. It covers Simple Interest (SI), Compound Interest (CI), Nominal vs Effective rates, Present and Future Value, Annuities (Ordinary and Due), Sinking Funds, and Perpetuities. The concepts learned here are applied heavily in CA Intermediate and Final.

View Official ICAI Syllabus

Exam Strategy Tip

Guaranteed 12-16 marks. Master your calculator! Learn the 'GT' and compound interest M+/M- tricks to solve annuity questions in 10 seconds without writing long formulas.

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