Four alternative investment opportunities are available in a mining project each offering different revenues for the next two years as shown in the table. If the interest rate is 10% annually, which alternative provides the best investment opportunity based on the net present value?
| Case I | Case II | Case III | Case IV | |
| Initial Investment (Rs.) | 40,000 | 1,00,000 | 80,000 | 1,20,000 |
| Return in Year 2 | 30,000 | 75,000 | 65,000 | 80,000 | Return in Year 3 | 30,000 | 75,000 | 65,000 | 80,000 |
A. I
B. II
C. III
D. IV
Answer: Option C
This Question Belongs to Mining Engineering >> Mine Economics
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