If a project's profitability index is equal to 1 then npv is
Answers
Answered by
1
please check this is right answer
Attachments:
Answered by
1
Answer:
If a project's profitability index is equal to 1 then Net present value is positive.
Explanation:
Profitability index is 1 at a point where the future inflows plus initial investment is equal.
It is also a break even point where the present value of future income is equal to initial investment made.
It is always suggested to have profitability index more than 1.
Similar questions