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CAT 1997 — DILR Question 14

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Passage / Data

Direction: Answer the questions based on the following table.

​​​​​​​​​​​​​​

​​​​​​​Note: All projects start in 1997.

Additional direction: Assume that the cost of the project is incurred in the year of completion; interest is charged at the rate of 10% per annum.

What is the cost incurred for projects completed in 1999?

Answer & solution

  • Rs. 1,282.6 crore

  • B

    Rs. 1,270 crore

  • C

    Rs. 1,805.1 crore

  • D

    Rs. 1,535 crore

Solution

Four projects are completed in 1999. They are: (i) Majestic Holiday, (ii) Supremo Hotel, (iii) Windsor Manor and (iv) Leela Hotels. It is very much similar to previous situation.
The cost of project is 250 + 300 + 275 + 235 = 1060
Hence, the cost incurred = 1060 × (1.1)2 = 1282.6 crore

CAT 1997 DILR Q14: Additional direction: Assume that the cost of the project is incurred in the year of completion; interest is c — Solution | TheCATExam