A profitability index of .85 for a project means that:

Related MCQs

• A project's profitability index is equal to the ratio of the of a project's future cash flows to the project's .
• A project having a profitability index of ------ is accepted
• Profitability Index, when applied to Divisible Projects, impliedly assumes that:
• The proposal is accepted if the profitability index is more than -----
• The proposal is rejected in case the profitability index is ------------
• The net cash flows of the project and their present values are as follows Year 1 2 3 4 Net cash flow (Rs) 5100 5100 5100 7100 PVIF @12% 0.893 0.797 0.712 0.636 Present Value (Rs) 4554 4065 3631 4516 The initial investment in the project is Rs12500, What is the NPV of the project?
• Which of the following is a Profitability Ratio?
• Working Capital Management refers to a Trade-off between _____________and Profitability.
• Which of the following is a Profitability Ratio?
• Ratio Analysis can be used to study liquidity, turnover, profitability etc., of a firm. What does Debt-Equity Ratio help to study?