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1. S Ltd has Rs 10,00.000 allocated for capital budgeting purposes. The following proposals and associated profitability indexes have been determined: Project Amount Profitability Index
1. S Ltd has Rs 10,00.000 allocated for capital budgeting purposes. The following proposals and associated profitability indexes have been determined: Project Amount Profitability Index 3,00,000 1.22 1,50,000 0.95 3,50.000 1.20 4,50,000 1.18 2,00,000 1.20 4,00,000 1.05 Which of the above investments should be undertaken? Assume that projects are indivisible and there is no alternative use of the money allocated for capital budgeting
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