P Ltd. is considering a new project with an initial outlay of `70,000. The project has a

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● P Ltd. is considering a new project with an initial outlay of `70,000. The project has a lifespan of 4 years with Cash Inflows of `25,000, `30,000, `18,000 and `16,000 for year 1, 2, 3 and 4, respectively.

Calculate the Profitability Index for the project if the Cost of Capital is 10% p.a.


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Financial Management

ISBN: 9789352605606

1st Edition

Authors: Swapan Sarkar, Bappaditya Biswas, Samyabrata Das, Ashish Kumar Sana

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