Examveda

A profitability index (PI) of .95 for a project means

A. The project's costs (cash outlay) are less than the present value of the project's benefits

B. The project's NPV is greater than zero

C. The project's NPV is greater than one

D. The project returns are 95 paise in present value for each current rupee invested

Answer: Option D


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Related Questions on Business Finance

Match List-I with List-II and select the correct answer:

List-I List-II
a. Modigliani Miller approach 1. Commercial papers
b. Net operating income approach 2. Working capital management
c. Short-term money market instrument 3. Capital structure
d. Factoring 4. Arbitrage

A. a-4, b-3, c-1, d-2

B. a-3, b-4, c-1, d-2

C. a-2, b-3, c-1, d-4

D. a-3, b-2, c-4, d-1