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Commerce · Q1237

Financial Management

Graduate and Post Graduate · Commerce · question 1237

Q1237

Profitability Index, when applied to Divisible Projects, impliedly assumes that:

A.
Project cannot be taken in parts
B.
NPV is linearly proportionate to part of the project taken up
C.
NPV is additive in nature
D.
Both B and C
Answer

Answer: Option D

Solution

Answer: Option D
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