Question
A bank is reviewing two independent credit proposals where unlimited capital is available: • Proposal X: Requires ₹500 Crore outlay ---Yields NPV of ₹50 Crore (PI = 1.10) • Proposal Y: Requires ₹50 Crore outlay ----Yields NPV of ₹20 Crore (PI = 1.40) To maximize absolute economic value, which proposal(s) should be approved?
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