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Corporate Finance · Quiz 1 · 15 Mar 2026 · January 2026 term

Question 3: Consider a project with an initial investment of Rs 5,000…

Question 3

+4 marksOne correct option

Consider a project with an initial investment of Rs 5,000 in Year 0. It generates cash flows of Rs 3,000 in Year 1 and Rs 3,000 in Year 2. If the discount rate is 10%, what is the Profitability Index (PI)?

  1. A

    1.04

  2. B

    0.96

  3. C

    1.21

  4. D

    1.15

Show answer

Correct answer

  • A

    1.04

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Question 3 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 15 Mar 2026, in the January 2026 term (Corporate Finance 15 Mar 26). It carries 4 marks.

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