GATE 2026 PI – Question 32

Operations Research and Operations Management · Engineering Economy and Costing · 1 mark · Numerical answer

A customer invests ₹2,00,000 now for payouts of ₹1,00,000 yearly for three consecutive years. Discount rate is 15% per year. Find investment NPV (₹, nearest integer).

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Correct answer: 28319 to 28324

Explanation

Discount each year-end payout to the present: $\mathrm{NPV}=-200000+100000/1.15+100000/1.15^2+100000/1.15^3=28322.5117$. Therefore **₹28,323**.

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