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
C. 31.88
D. 20.68
Answer: Option B
This Question Belongs to Mining Engineering >> Mine Economics
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