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Machine costs Rs 40,000; PV of its inflows is Rs 43,679. What is the PI, to three decimals?

A1.092
B1.109
C1.000
D0.916
Answer & Solution
Correct answer: A. 1.092
43,679 divided by 40,000 is 1.092, so the project clears the break-even hurdle of one.
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