If a project costs Rs. 100 at , yields Rs. 60 at , and Rs. 80 at , and the compound rate of interest is per period, then the NPV equals
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1 mark, −0.33Public EconomicsPublic expenditure and public debtPublic expenditure: growth and cost-benefit analysisModerateabout 2 min
UoH 2021 Question 58: Public expenditure and public debt
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If a project costs Rs. 100 at t=0, yields Rs. 60 at t=1, and Rs. 80 at t=2, and the compound rate of interest is 10% per period, then the NPV equals (A) 20.7 (B) 25 (C) 10 (D) 10.7
Public expenditure and public debt has come up 29 times in 6 exams since 2012.
What this question tests
This question is on Public expenditure: growth and cost-benefit analysis, part of Public expenditure and public debt in Public Economics.
Why government spending grows and how projects are appraised.
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