Question: 3 . a . A project is started with an initial investment of Rs . 6 , 0 0 , 0 0 0 . The

3. a. A project is started with an initial investment of Rs.6,00,000. The cash flows
generated over the next 4 years are Rs.1,00,000 ; Rs.2,50,000 ; Rs.4,56,000 ; Rs.
5,74,000. Calculate the NPV of the project at discounting rate of 11%
Also calculate the real discounting rate, when inflation is at 6%

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