Economics · Financial Management
A project has a Profitability Index (PI) of 1.30. What does this indicate?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The Internal Rate of Return (IRR) is 1.30 times the hurdle rate
- 2The project returns Rs. 1.30 in present value for every Re. 1 invested✓
- 3The payback period is more than one year
- 4The Net Present Value (NPV) is less than zero
Correct answer
The project returns Rs. 1.30 in present value for every Re. 1 invested
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