Please consider the following data: Project NPV ('000) I ('000) A 15 60 B 20 100 C 25 150 Given that NPV = PV – I and PI = PV / I, where PV is the…

CA Intermediate · Financial Management and Strategic Management · RTP · January 2026
Please consider the following data: Project NPV ('000) I ('000) A 15 60 B 20 100 C 25 150 Given that NPV = PV – I and PI = PV / I, where PV is the present value of future net cash inflows and I is the initial investment on a project. Based on the data furnished above, which one of the following statements is correct?
(A) Project A is recommended based on PI criterion
(B) Project B is recommended based on NPV criterion
(C) Project C is recommended based on PI criterion
(D) Project A is recommended based on NPV criterion

Suggested Answer and Working Notes:

Correct Answer: Option (A)

Project A is recommended based on PI criterion

Topics: Part-A: Financial Management

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