Question: Q . 4 Set. ( A ) There are two energy investment projects ( P 1 and P 2 ) in front of the company

Q.4Set. (A) There are two energy investment projects (P1 and P2) in front of the company each worth Rs.30000(for project P1) and 25000(for project P2) as initial investment. As part of the financial appraisal of the project, calculate the profitability index for the two projects (P1 and P2). Assume that both the projects have an NPV of Rs.11500. Suggest your opinion on choosing the project with suitable justification.
 Q.4Set. (A) There are two energy investment projects (P1 and P2)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!