A project with investment Rs 80,000 has PI of 1.25. Its NPV is
ARs 20,000
BRs 25,000
CRs 1,00,000
DRs 10,000
Answer & Solution
Correct answer: A. Rs 20,000
PI = 1 + NPV/investment, so NPV = 0.25 x 80,000 = Rs 20,000.
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