If the profitability index of a project shows more than 1, it means that the project's return exceeds the cost of borrowed funds.

Name: If the profitability index of a project shows more than 1, it means that the project's return exceeds the cost of borrowed funds.
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A profitability index greater than 1 indicates that the present value of future cash flows generated by the project is greater than the initial investment, meaning the project's return exceeds its cost, including the cost of borrowed funds.

If the Profitability Index of a Project Shows More Than