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?
Explanation:
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
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