Question
An infrastructure company is evaluating a project requiring an initial investment of ₹1,000 Lakhs. The total Present Value (P
- I and the corresponding Net Present Value (NP
- V of expected future cash inflows discounted at the company's cost of capital (10%) is ₹1,250 Lakhs. Without doing complex calculations, what is the Profitability Index (P
- V decision?
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