Question: Q . 5 . An energy conservation project with a life of 5 years has a total cost of Rs . 5 0 , 0

Q.5. An energy conservation project with a life of 5 years has a total cost of Rs.50,000 has no salvage value. The cash flows are estimated to be 15,000 per annum. Assuming a discount factor of 12%, evaluale the NPV (Net Present Vatue), What is the profitability index (pi) for thin project? Explain the relevance of PI in the financial appraisal of projects.
Q.5. An energy conservation project with a life of 5 years

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