A project with PI of 1.4 needs Rs 50,000 upfront. What is the PV of its future inflows?
ARs 35,714
BRs 70,000
CRs 90,000
DRs 20,000
Answer & Solution
Correct answer: B. Rs 70,000
PV of inflows is PI times investment, 1.4 x 50,000 = Rs 70,000.
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