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An initial cost is Rs 6000 and probability index is 5.6 then present value of cash flows will be

A. Rs 25,000.00

B. Rs 28,000.00

C. Rs 33,600.00

D. Rs 30,000.00

Answer: Option C

Solution(By Examveda Team)

Present value of cash flow = Initial cost × Profitability index = 6000 × 5.6 = Rs. 33600.00.

This Question Belongs to Commerce >> Financial Management

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