A firm, having a cost of capital of 12%, evaluates a small mining project of initial investment of Rs. 100 lakhs. For the benefits shown in the table below, the benefit-cost ratio of the project is
Year | 1 | 2 | 3 | 4 |
Benefits (Rs. in lakhs) | 25 | 40 | 40 | 50 |
A. 0.985
B. 1.145
C. 1.384
D. 1.550
Answer: Option B
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