The profitability index (PI) of a project is 1 0 What do you know about the project 's net present value (NPV) and its internal rate of return (IRR) from the PI ...

PI is given as follows PI PV of all future cash inflowsOutflows PI of 10 indicates that PV of cash inflows and cash outflows of the project is equal NPV is difference of PV of all cash inflows and cash outflows Thus NPV of the project is zero At IRR cash inflows cash outflows PI of 1 ...

The profitability index (PI) of a project is 1.0. What do you know about the project's net

Question:

The profitability index (PI) of a project is 1.0. What do you know about the project's (NPV) and its (IRR) from the PI?

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...