Financial ManagementMCQQuestion 6281 of 222
All Questions

7. T Ltd. is looking for a capital project in order to replace its existing old machine. It got two proposals to consider; details of which are given below: Proposal X Proposal Y Initial investment ₹ 6,50,000 ₹ 7,80,000 Estimated useful life 5 Years 3 Years Annal cash inflows ₹ 1,90,000 ₹ 3,50,000 Cost of capital 10% 10% Year 1 2 3 4 5 PVIF0.10, t 0909 0.826 0.751 0.683 0.621 PVIFA0.10, t 0.909 1.736 2.487 3.170 3.791 What will be Equivalent Annual NPV for Proposal X and Proposal Y?

Select Your Answer (Keyboard: A, B, C, D)
For any discrepancies in this question, email contact@cadada.in

Correct Answer

✅ Option A — ₹ 70,290.00, ₹ 90,450.00

All Options:

  • A₹ 70,290.00, ₹ 90,450.00 ✓
  • B₹ 18,541.28, ₹ 36,369.12
  • C₹ 1,90,000.00, ₹ 3,50,000.00
  • D₹ 77,326.73, ₹ 99,504.95 (2 Marks)

Detailed Solution & Explanation

Correct Answer: Option **A** Explanation: As per the official suggested answer, option **A** is correct. Hence, **Option A** is the correct answer.

More Questions from Financial Management

Ready to Master Financial Management?

Practice all 222 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free