1.
What is the present value of ₹10,000 to be received 5 years from now, assuming
an annual discount rate of 6%?
2. Calculate the present value of ₹25,000 to be received in 10 years, with a discount
rate of 8%.
3. Find the present value of ₹15,000 to be received after 7 years, discounted at an
annual rate of 5%.
4. What is the present value of an annuity paying ₹5,000 annually for 6 years if the
discount rate is 7%?
5. Calculate the present value of an annuity that pays ₹3,000 at the end of each year
for 10 years, given a discount rate of 9%.
6. If you are to receive ₹50,000 in 20 years, what is the present value at a 4%
discount rate?
7. A project is expected to generate cash flows of ₹10,000 in year 1, ₹15,000 in year
2, and ₹20,000 in year 3. Calculate the present value of these cash flows at a 6%
discount rate.
8. What is the present value of an annuity due paying ₹4,000 annually for 8 years, if
the discount rate is 5%?
9. Calculate the present value of ₹100,000 to be received after 15 years, assuming a
discount rate of 12%.
10.A business is expected to generate the following cash flows over the next 4 years:
₹8,000, ₹12,000, ₹10,000, and ₹15,000. If the discount rate is 7%, calculate the
present value of these cash flows.
11.An investor is considering a bond that will pay $1,200 annually for the next 5
years and will return the face value of $10,000 at maturity. If the required rate of
return is 8%, what is the present value of the bond?
12.If you invest ₹10,000 at an interest rate of 5% compounded annually, what will be
the future value after 4 years?
13.A project requires an investment of ₹150,000 and will generate cash inflows of
₹40,000 at the end of Year 1, ₹50,000 at Year 2, ₹60,000 at Year 3, and ₹70,000
at Year 4. If the discount rate is 12%, calculate the NPV of the project and tell us
that this project should be accepted or not and why?
14.A mutual fund promises to return ₹1,000 per year for the next 6 years. If you
require a return of 9%, what is the present value of this investment?
15.Calculate the effective interest rate if the nominal interest rate is 12%
compounded quarterly.
16.A project requires an initial investment of ₹250,000 and will generate cash
inflows of ₹80,000 in Year 1, ₹90,000 in Year 2, ₹100,000 in Year 3, and
₹120,000 in Year 4. Calculate the IRR of the project.
17.An investor plans to receive ₹30,000 in 4 years. What is the present value of this
amount at a discount rate of 8%?
18.A company has two investment projects, X and Y. The expected cash flows for
each project are as follows:
Year Project X (₹) Project Y (₹)
0 -1,000,000 -1,000,000
1 300,000 400,000
2 400,000 300,000
3 500,000 200,000
4 600,000 100,000
Calculate the NPV and Profitability Index (PI) for both projects if the cost of
capital is 10%.
19.A savings account offers an interest rate of 6% compounded annually. If ₹10,000
is deposited now, how much will be in the account after 5 years?
20.Rohan invests ₹25,000 in a mutual fund that has an expected return of 9% per
annum. What will be the value of his investment after 8 years?
21.If an individual saves ₹1,000 at the end of each year for 5 years in an account that
earns 8% interest compounded annually, what will be the total amount at the end
of 5 years?
22.A loan of ₹50,000 is taken at an interest rate of 12% per annum, to be repaid in 4
equal annual installments. Calculate the amount of each installment.
23.Calculate the future value of an investment of ₹12,000 at 10% interest
compounded semi-annually for 6 years.
24.A company is considering a project that requires an initial investment of ₹500,000
and is expected to generate cash inflows of ₹150,000 for the first two years and
₹200,000 for the next three years. If the required rate of return is 10%, should the
project be accepted based on the NPV?
1. ₹7,472.58
2. ₹11,579.84
3. ₹10,660.22
4. ₹23,832.70
5. ₹19,252.97
6. ₹22,819.35
7. ₹39,576.29
8. ₹27,145.49
9. ₹18,269.63
10. ₹37,564.31
11.11594.60
12.12155
13.16270.37
14.4485.90
15.12.55%
16.11.23%
17.22083.33
18.Project X NPV 381474.94; Project Y NPV −165865.57; Profitability Index (PI)
X 1.38; Profitability Index (PI) X 0.83
19.13382.25
20.49975.13
21.5866.58
22.16492.24
23.21550.27
24.171466.39
