Question

When the discount rate (cost of capital) applied to a capital budgeting project increases, what happens to the project's Net Present Value (NP

  • I ?
  • V and Profitability Index (P
A Both NPV and PI increase
B Both NPV and PI decrease
C NPV increases, but PI decreases
D NPV decreases, but PI remains unchanged
Practice Next

Hey! Ask a query

🎓
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
  • 200 Questions with Detailed Solutions
  • Section-wise Coverage (GA, English, Quant & Reasoning)