Initial cost is Rs 5000 and probability index is 3.2 then present value of cash flows is
A. Rs 8,200.00
B. Rs 16,000.00
C. Rs 10,000.00
D. Rs 1,562.50
Answer: Option B
Solution (By Examveda Team)
Present value of cash flow = Initial cost × Profitability index= 5000 × 3.2 = Rs. 16000.

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