Question

A company is considering a project which requires an investment of Rs

A company is considering a project which requires an investment of Rs. 1,200,000
now and Rs. 300,000 at the end of the 1st year. It will earn Rs. 200,000 at the end of
2nd year and thereafter it will earn a fixed annual amount up to the 7th year.
If interest rate is 11%, find the amount that the project should earn annually i.e.
from year 3 to year 7 if the company desires to earn a net present value of
Rs. 100,000

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