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An initial cost is Rs 6000 and probability index is 5...

This question belongs to Commerce Financial Management
Financial Management
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An initial cost is Rs 6000 and probability index is 5.6 then present value of cash flows will be

Answer & Solution
Correct Answer: Option C
Present value of cash flow = Initial cost × Profitability index = 6000 × 5.6 = Rs. 33600.00.
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