CMA Final · Strategic Financial Management · Digital Finance
A fintech firm expects to acquire customers at a cost of ₹1,200 each. Each customer yields an annual contribution of ₹600 for 4 years, with the first inflow at the end of year 1. Discount rate is 10%; the annuity factor for 4 years at 10% is 3.1699. What is the net present value per customer?
NPV per customer is ₹701.94. Discounted contributions are 600 × 3.1699 = ₹1,901.94, and deducting the ₹1,200 acquisition cost leaves a positive value, so acquiring customers is worthwhile.
- A₹701.94Correct
- B₹1,200.00
- C₹1,902.00
- D₹-701.94
Explanation
PV of contributions = 600 × 3.1699 = ₹1,901.94. Less acquisition cost 1,200 gives NPV ₹701.94. ₹1,902 is the PV without deducting cost; the negative figure reverses the sign.
Did you get it right without looking?
One question tells you little. A timed set on Digital Finance shows your real accuracy, how long you take and where you lose marks.
More Digital Finance questions
- A fintech lender in Pune offers a digital loan of Rs 1,00,000 for one year. It deducts a processing fee of 2% upfront, so the borrower recei…
- A digital wallet company has 2,00,000 users. Monthly churn is 5%. Average monthly contribution per active user is Rs 80 and customer acquisi…
- A wallet company has 20 lakh users and a monthly churn of 2%. Average monthly contribution per active user is Rs 40. Using the simple custom…
- A peer-to-peer lending platform in Bengaluru lists a loan of ₹10,00,000 at 18% p.a. simple interest for one year, with a platform fee of 2% …
- A digital lending platform, RupeeFlow, charges borrowers a processing fee of 2% deducted upfront on a ₹2,00,000 loan for 1 year, with intere…
- A fintech lender in Pune disburses Rs 50,000 digital loans for 3 months. It charges a processing fee of 2% upfront (deducted from the disbur…