alleryStart learning →Outlay Rs 10,000; inflows Rs 6,600 in year 1 and Rs 7,260 in year 2; discount rate 10 percent. Find the PI.
A1.20
B1.10
C1.00
D1.38
Answer & Solution
Correct answer: A. 1.20
PV = 6,600/1.1 + 7,260/1.21 = 6,000 + 6,000 = 12,000, so PI = 1.20.
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