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the present value of benefits is85% greater than the project's costs.
the project's NPV is greater than zero.
the project returns85 cents in present value for each current dollar invested.
the payback period is less than one year.
That means the Project has a big Problem, it only returns85% of what is invested
Option c is correct answer ??????????
My answer is option (C) the project returns 85 cents in present value for each current dollar invested.
A regulation for evaluating whether to proceed with a project or investment. The profitability index rule states: If the profitability index or ratio is greater than1, the project is profitable and may receive the green signal to proceed. Conversely, if the profitability ratio or index is below, the optimum course of action may be to reject or abandon the project.
the project returns85 cents in present value for each current dollar invested.
>>>>>>>>>>>>>>>>> the project returns85 cents in present value for each current dollar invested.
the project returns85 cents in present value for each current dollar invested i.e. Net present value is less then Zero.
Correct Ans is.:
The project returns85 cents in present value for each current dollar invested.......................
>>>>>>>>>>>>> the project returns85 cents in present value for each current dollar invested.
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The project returns85 cents in present value for each current dollar invested...... . . .
