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How much extra financing will be needed

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Pratyaksh ltd. has generated 1.50 crores from the sale of one of its manufacturing units. The company has an option to invest the money for five years in an investment avenue that will give an assured compounded return of 11.5%. On the maturity of investment at the end of the fifth year the firm can invest the money in proposed expansion plans that are projected to cost Rs.5.25 crores. If the firm decides to go ahead with the investments how much extra financing will be needed at the end of fifth year to finance its expansionplans.

Reference no: EM133111527

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