Q1
A coal mine receives two bids for purchase of a new dragline. The first bid quotes Rs. 150 crore as a price to be paid in full on delivery. The second bid quotes Rs. 180 crore as a price payable at the end of the third year after delivery. If the discount rate is 12%, the difference in NPV between the first and second bids in crore of rupees is
A.
19.68
B.
21.88
AnswerC.
31.88
D.
20.68
Answer: Option B
Solution
Answer: Option B
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