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Architecture and Planning Miscellaneous

  1. One acre of agricultural land has been given on a lease till perpetuity at an annual rent of Rs. 10,000 to be paid at the end of each year. Net Present Value of the land parcel in Rupees assuming a discount rate of 5% per annum is ___________
    1. 200000 to 200000
    2. 300000 to 350000
    3. 100000 to 200000
    4. 50000 to 150000
Correct Option: A

Net Present Value = Annual Rent (annual net income) ×
100
interest rate

(Capitalized value in perpetuity) = 10000 ×
100
= 200000
5



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