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To calculate the PI it is equal to NPV/ Initial investment ryt, but they have actually added both then they have divided by investment.
For A it should be 1000/2500 but they have done it 3500/2500
why is this ?
You can do it either way (and either is accepted in the exam).
The ranking will not be affected and nor will the final answer.
thnks again 🙂
You are welcome 🙂